| In 2012, the CMBS (commercial mortgage-backed securities) market had a significant rally as is evident from the table below showing bond spreads over swaps. Not only were the spreads tighter significantly over the year, the performance was better than expectations by almost any measure.
The spread tightening was not limited to new issue either, legacy CMBS prices were up significantly too. Why did CMBS do better than expected, and can this trend of higher issuance and tighter spreads continue?..............................................Full Article: Source
|