CMBS conduit securities offerings continued to flow in November despite growing global market volatility. 3650 REIT, Citigroup and Deutsche Bank priced a $918.6-million conduit deal — the first from 3650’s new shelf — at relatively tight spreads. The super-senior, long-term AAA-rated securities priced at 72 basis points (bp) over swaps, 2 bp wider than whisper talk, and the bonds rated BBB/BBB+ by Fitch and KBRA went out the door where they were offered at 250 bp. 3650 retained the BBB- tranche as part of the horizontal risk-retention piece.
In addition, Wells Fargo, Morgan Stanley, Bank of America and NCB were in the market with a $1.32-billion conduit deal. Benchmark AAA-rated bonds were offered at 67 bp over swaps and the triple-B-minus bonds at 330 bp (BANK 2021-BNK37). Bond dealers were also busy placing a deal from Barclays, KeyBank, Société Générale, Bank of Montreal and Starwood Mortgage Capital; they were in the market with their own $1.07-billion offering.
The flurry of deals is consistent with prior yearend activity as loan originators look to move their yearend loans into the CMBS market to have fresh capital to start 2022.