The Fed announced this week that they may put the Maiden Lane III assets (former AIG assets) up for sale, which include nearly $8 billion of CMBS collateral that is in two MAX CDOs. The CMBS collateral primarily consists of AJs, AMs, and A4s. It is unclear if the CDOs would be broken up or sold in their current form, but we believe it will cause some short-term volatility in pricing.
This would be a lot of supply for the CMBS market to digest, where average daily volume the past year has totaled $1 billion and the largest single day supply was just over $4 billion.
No comments:
Post a Comment