Oil price concerns (cracks in the “freeze” agreement among major producer nations) caused volatility in equity and debt markets. The 10-year Treasury dropped to 1.65% today on a safe haven trade before oil prices stabilized – and later bounced back up to 1.75%. Fluctuations are further evidence that the price of oil is becoming an international market barometer that seems to be driving risk appetite amongst investors… CMBS: The “good” news is that 3 recent pools are pricing in a tight range (about T +165 for the 10 year AAA), this is hopefully a sign of stabilization. B-Piece buyers are still demanding higher yields and monitoring loans closely for potential “kick outs”…. Full leverage new loans are closing and pricing in the 4.75-5.25% range. Stay Tuned. David R. Pascale, Jr.
