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CMBS

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  • A partnership between Goldman Sachs and Citigroup Global Markets has priced GSMS 2011-GC3, a $1.4 billion commercial mortgage-backed securities deal.
  • MKP Capital, a distressed-debt fund manager, is said to have sold off roughly two-thirds of its portfolio of asset-backed securities last week.
  • The Commercial Real Estate Council has begun lobbying for an exemption to a rule under the Dodd-Frank Act that would require issuers of asset-backed securities to hold 5% of the issue.
  • Lloyds Banking Group is said to be prepping a swift follow-up to its standalone U.K. residential mortgage-backed trade Headingley 2011-1, with a new issuance from its U.K. RMBS master trust, Permanent.
  • Trading activity in the European asset-backed securities secondary markets has remained quiet over the week, though some market professionals forecast a widening of the bid-ask spread on European paper.
  • There is growing concern that the quality of the commercial mortgage-backed securities coming to the market is declining amid the industry’s revival.
  • Price guidance on Lloyds Banking Group’s Headingley 2011-1 residential mortgage-backed deal emerged this afternoon.
  • Northern Rock is shopping its first public residential mortgage-backed deal since the financial crisis. The issue is being hailed as a major boost to Europe’s securitization sector, but some London-based investors reckon it could prove tricky to tempt some buyers, noting bonds in Northern Rock’s Granite RMBS may yet offer better yields.
  • U.S. regulators are expected to miss the April 18 target date, set under the Dodd-Frank Wall Street Reform Act, for overhauls to the lending market that includes risk retention rules for mortgages and securitizations.