We have a lot of Treasury auctions this week, retail sales, gas. Most importantly, Wednesday is an recommended close for Veteran's Day, and I'm looking forward to watching the little cars with big guys in red fez hats zipping around on our little village's Main Street drag (or is that Memorial Day - I think I may end up being very disappointed if there are no fez's on Wednesday).
Spreads gapped wider for the week. There was a lot of selling as folks took profits off the table for the year, and very little buying as the same folks are waiting to see what kind of allocation they'll get for 2010. The holiday doldrums seemed to have started a few weeks early this year.
It felt like there was a huge uptick in downgrade activity this week, but I think it was just in the MSM a little more than usual. Within domestic CMBS, there were 280 rating actions last week, just slightly below the average 309 actions per week since August 1st. They were mostly negative with no upgrades, and just 8 cases where the watch status improved. S&P has always been the dominate CMBS rating agency, but they have been substantially more active (869 actions since 8/1/09) than either Moody's (302) or Fitch (646). The deals that had downgraded are listed below:
STRIP 2004-1A (these are some old ReREMIC deals mostly 3yr old A1s and A2s)