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CMBS

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  • Royal Bank of Scotland has told investors it sees good value in investment grade commercial mortgage-backed securities with AAA notes that are yielding at around the same level as A/BBB unsecured property debt of similar maturity.
  • Lenders are dramatically reducing spreads for fixed-rate conduit loans, with pricing coming in as much as 50-60 basis points over the past two weeks.
  • The first European commercial mortgage-backed securities deal since August has hit a snag in the market as arranger Hypo Real Estate Bank has reportedly been unable to sell the bonds, indicating a continued stalemate between issuers and investors.
  • Hypo Real Estate Bank (HRE) has issued a Eu332.6m synthetic CMBS. The bank says that Estate Germany 2007-I has been structured and launched and that they have already placed some of the notes in private placements.
  • Hypo Real Estate Bank has issued the first European commercial mortgage-backed securities deal since August—a synthetic transaction sized at €332.6 million ($468.8 million).
  • Investors in European commercial mortgage-backed securities are still unsure about the levels at which they should be picking up AAA CMBS notes, according to Deutsche Bank's Clive Bull.
  • The next version of the CMBX, the synthetic commercial mortgage-backed securities index, will include a junior tranche of AAA-rated bonds.
  • Philadelphia-based RAIT Financial Trust closed a €900 million ($1.27 billion) securitization backed by European real estate last week.
  • Loss severities are ticking up within commercial mortgage-backed securities, according to analysts at Fitch Ratings.