Spreads "SLASHED" due to high investor demand.

WSJ headline writers must keep a little book of crazy but eye-catching adjectives:

The dealer slashed yield spread premiums on bonds just below the safest tier of debt, a sign that investors are growing comfortable enough with the economic and real estate recovery to take slightly greater risks. Such bonds have also lagged a rally in CMBS this year, enhancing their attraction relative to top-tier debt, according to Roger Lehman, a strategist at Credit Suisse.

Tranche	Rating (F/M)	Size ($mm)	C/E	WAL	Talk	Final Guidance
A-1	AAA/Aaa	48.958	30.00%	2.29	S+65	S+55
A-2	AAA/Aaa	77.841	30.00%	4.64	S+105	S+105
A-3	AAA/Aaa	115.586	30.00%	6.86	S+135
A-4	AAA/Aaa	416.502	30.00%	9.6	S+115	S+110
A-M	AAA/Aaa	92.95	20.13%	9.82	S+225	S+185
B	AA/Aa2	44.711	15.38%	9.89	S+325
C	A/A2	32.944	11.88%	9.89	S+425	S+385
D	BBB-/Baa3	52.946			S+625	S+600

Astounding! Rare! May be in Jeapordy!

Big impact words used in multiple articles about loan that sells for more than it's outstanding mortgage balance:

The DJ News headline characterizes it as "rare",

CMBS Investors Get Rare Payoff On '07 Loan

DB says,

Harris Trifon, a commercial mortgage bond strategist at Deutsche Bank, characterized the sale as "astounding"

DJ states,

By actually turning a profit on the loan, which it has been trying to resolve for three years, troubled-loan specialist firm CW Capital Asset Management has demonstrated that in some cases, patience pays.

It sure does! They charged $10.6mm in fees! That is like 14.5% of the loan's balance - not only did they manage to not get sued by the CMBS trust holders, support their own weakened B-Piece position, make a great deal with BlackRock and Korman (the buyers), but they completely ripped the face off the sponsor while he was down. Awesome! Riveting!


Do you know what else is rare and astounding? The Ossabaw Island Hog. Pig roast anyone?