Deutsche Dip • Stocks Recover • CMBS Spreads

March 31, 2023 | Hoya Capital

Deutsche Dip • Stocks Recover • CMBS Spreads Daily Recap Mar 24 Written By Alex Pettee, CFA U.S. equity markets recovered Friday in another choppy session as reassurances from regulators helped to calm market jitters after a plunge from Deutsche Bank sparked renewed liquidity concerns. Reversing intra-session declines as steep as 1%, the S&P 500 finished higher by 0.6% today- and 1.5% for the week- while the tech-heavy Nasdaq 100 advanced 0.2% today, and 2% for the week.

Real estate equities recovered today - salvaging an otherwise brutal week - amid amplified focus on commercial real estate-backed loans held by regional banks. Another day, another bank in turmoil. Deutsche Bank (DB) plunged nearly 12% in early trading before paring its decline later in the session, a sudden bout of turbulence that lacked a discernible catalyst. After a week of seemingly relentless selling pressure, office REITs led the rebound today.

The option-adjusted spread ("OAS") on CMBS has widened considerably in recent weeks - a surge that has not been seen to the same degree in RMBS markets. U.S. equity markets recovered Friday in another choppy session as reassurances from regulators helped to calm market jitters after a plunge from Deutsche Bank sparked renewed liquidity concerns. Reversing intra-session declines as steep as 1%, the S&P 500 finished higher by 0.6% today - and 1.5% for the week - while the tech-heavy Nasdaq 100 advanced 0.2% today and roughly 2% on the week.

The Dow added 132 points. Real estate equities recovered today - salvaging an otherwise brutal week - amid amplified focus on commercial real estate-backed loans held by regional banks. The Equity REIT Index rallied by 2.0% today with all 18 property sectors in positive territory, while the Mortgage REIT Index rallied 2.7%, and Homebuilders continued their strong week with gains of another 1% today. Another day, another bank in turmoil.

Deutsche Bank ( DB ) plunged nearly 12% in early ...