February 25, 2016 Comments Off on Pascale’s Perspective: Treasuries Views: 596 Connect Classroom

Pascale’s Perspective: Treasuries

By: David R. Pascale, Jr.- George Smith Partners 

Oil price concerns (cracks in the “freeze” agreement among major producer nations) has 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 three  recent pools are pricing in a tight range (about T +165 for the 10 year AAA), 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.

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