Commercial mortgage-backed securities spreads could tighten to inside of swaps plus 60 for the benchmark super-senior AAA-rated bonds on positive sentiment in the sector, market players told REFI. The number reflects the market shaking off its negative post-crisis impression of CMBS and moving back to a more rational corporate to CMBS relative value framework, said Darrell Wheeler, analyst at Amherst Securities.

“We’re going to see spreads tightening through June. There’s plenty of money out there, and CMBS is relatively cheap—even for triple-A bonds,” he said.

The chatter comes amid pricing of swaps plus 87 for WFRBS 2014-C20, a recent....

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