Tuesday, February 28, 2012

It's all cupcakes and unicorns in CMBS

CMBX.4.AMs are at 82, up from 76 at the start of the year, and CMBX.4.AJs are at 67, up from 57 at the start of the year.

Issuance Is Ramping Up:
Deutsche Bank will sell about $941 million in commercial mortgage-backed securities this week, kicking off a busy period for a market that may be confronting new headwinds.

It's part of the more than $6 billion in new issues that are coming as investors are beginning to question the market's ability to sustain gains won since November, analysts said. In addition to the impact of supply, growing speculation of Middle East unrest and lingering unease over the lasting power of a Greece bailout have made investors wary.
Freddie is talking their 10year from the latest K series (FREMF 2012-K17) at +63.

One of the TOP stories this morning on Bloomberg was "Manhattan Lures REITs Capitalizing on Soaring Rents: Mortgages"

Pretty much everything is going great until that girl with the tattoos bends you over the counter and rams a cupcake up your pachooka. All us guys thought y'all were getting into your scivvies to have a friendly cupcake fight followed by some light oil wrestling, then the wild one had to get all jammed up and take it in a totally different direction. We're not entirely disappointed in the outcome, but do expect some basic rules of sportsmanship to be adhered to.

I'm still of the opinion that the girl with all the tattoos is about to try to ram something up my pachooka when I least expect it. I'm not totally adverse to the idea, but don't bother calling to sell me bonds today.

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