Average daily volume in the CMBS market in December is down versus November, according to data reported by the Financial Industry Regulatory Authority’s Trade Reporting and Compliance Engine or TRACE.
Credit Suisse analysts expect trading volume to remain that way, barring some major market event, over the next few weeks.
“Customer buys have slightly outpaced customer sells recently by a slight amount,” Credit Suisse analysts said in a report. “We attribute the better buying to the recent new issue and if we adjust for that, it appears that Street positions may be marginally higher over the past few weeks.”
Despite the lighter activity, CMBS has generally outperformed the broader markets. Spreads at the very top of the capital stack are only around five basis points wider week over week, according to Credit Suisse analysts.
“The weakness has really only been seen in the wider-trading names, with more seasoned/better names unchanged,” analysts said. “At the same time we see AMs unchanged to five basis points tighter while AJs have remained steady.”
Daily Briefing | Tuesday, December 27, 2011
Carrington Eyes Building Nationwide REO Rental Portfolio
Carrington Holding Co. is trying to raise $1 billion from investors to purchase foreclosed single-family properties that its mortgage services unit will manage and rent.
House Prices Fall Second Consecutive Month
House prices fell 1.2% in October after falling 0.7% in September according to new figures released by Standard Poor’s Tuesday morning.
Good and Bad Signs for Massachusetts Home Sales
Massachusetts’s home sales continued to show signs of a possible recovery with a 13% increase in November from the prior year.
Condo Demand Warming Up in South Florida
Developers at six newly proposed condominium towers in the tri-county South Florida region have signed more than 500 pre-construction sales contracts and reservations, an indication that the market there has returned in a big way.
One in Four Sales in ’11 Were All Cash Deals
Nearly four out of every ten homes sold in 2011 have been purchased for cash on the barrelhead, according to a preliminary count by Housing Intelligence.
Post Prepays Six MF Loans
Post Properties Inc., an Atlanta-based real estate investment trust, has prepaid six multi-family mortgage loans held by Freddie Mac and will record a $7 million loss on the transaction.
Fed Gives Thrift Owners Two Years to Adopt Reporting Changes
Most thrift holding companies will get a two-year phase in period for following Federal Reserve Board reporting requirements while others will initially be exempted, the central bank said Friday.
Churchill Mortgage Opens Kentucky Branch Office
Churchill Mortgage, a Brentwood, Tenn.-based lender that provides conventional, FHA, VA and USDA residential mortgages for borrowers, has expanded its financial services operations by opening an office in Kentucky.
CRE Loans’ Value Flat in Nov. vs. Oct.: DebtX
The combined value of loans in CMBS pools hardly budged from October to November, according to data released last week from DebtX. Based on loans that the advisory firm prices, the figure at the end of November was 85.2%, from 85.3% on Oct. 31.