Treasuries Rise as Spreads Narrow The “long rally in treasuries is ending” is a common refrain today as a combination of less fear, more appetite for risk, inflation rumbles, signs of recovery, supply concerns and other factors contribute to investors’ diminished appetite for US debt. Fortunately for borrowers, the renewed appetite for risk is driving spreads downward for the agencies, CMBS and portfolio lenders. Right now we are seeing some sub 200 spreads for CMBS, meaning a full leverage transaction should price at about 5.75% for 10 years. CMBS bonds are rallying, a major pool priced AAA 10 year bonds at approximately Swaps + 100 this week, originators continue to “sharpen their pencils”……Stay tuned……
Treasuries Rise as Spreads Narrow The “long rally in treasuries is ending” is a common refrain today as a combination of less fear, more appetite for risk, inflation rumbles, signs of recovery, supply concerns and other factors contribute to investors’ diminished appetite for US debt. Fortunately for borrowers, the renewed appetite for risk is driving spreads downward for the agencies, CMBS and portfolio lenders. Right now we are seeing some sub 200 spreads for CMBS, meaning a full leverage transaction should price at about 5.75% for 10 years. CMBS bonds are rallying, a major pool priced AAA 10 year bonds at approximately Swaps + 100 this week, originators continue to “sharpen their pencils”……Stay tuned……The “long rally in treasuries is ending” is a common refrain today as a combination of less fear, more appetite for risk, inflation rumbles, signs of recovery, supply concerns and other factors contribute to investors’ diminished appetite for US debt. Fortunately for borrowers, the renewed appetite for risk is driving spreads downward for the agencies, CMBS and portfolio lenders. Right now we are seeing some sub 200 spreads for CMBS, meaning a full leverage transaction should price at about 5.75% for 10 years. CMBS bonds are rallying, a major pool priced AAA 10 year bonds at approximately Swaps + 100 this week, originators continue to “sharpen their pencils”……Stay tuned……
