Stocks Slip Again, CMBS Trading Picks Up, Retail Round-up

By Trepp LLC

The weakness in US equities that began on Monday afternoon spilled over into Tuesday, as all the major US indexes fell yesterday. The Dow slid 109 points (0.45%) on Tuesday, while the S&P 500 lost 0.37% and the Nasdaq slipped 0.19%. Data published yesterday revealed that the US trade deficit spiked in October, while the Institute of Supply Management’s index of service providers slipped.

Yields on long-dated Treasuries fell slightly, with the yield on the 10-year ending down one basis point at 2.36%.

CMBX 6/7/8/9/10 AAA spreads were largely unchanged yesterday, while BBB- spreads moved out gradually over the course of the day. By the end of the session, CMBX 6/7/8/9/10 BBB- spreads were wider by three to five basis points.

Trading in the CMBS cash market was active yesterday with about $200 million out for bid. The decent levels for secondary trading continue even as investors stay busy kicking the tires on the various new issues coming to market each week. Cash spreads were flat to a touch wider yesterday.

Retail Round-up: Accessories retailer Charming Charlie announced it will scale down its portfolio of 375 stores via closures. (The exact number of closures has yet to be revealed.) The firm will also reduce headcount at its Houston office, and will shutter its Los Angeles office.

Compliments of Trepp LLC, a member of the EACCNY