In an unforeseen turn of events, spreads for commercial mortgage-backed securities have officially surpassed the spread of peanut butter on my morning toast. It’s been reported that the last time these spreads were this wide was in May 2020, around the same time I was loudly declaring that I would have done better on all of my final exams if only I had remembered to bring a jar of jelly to the testing center.
But let’s not get bogged down in the past. This current discrepancy in spreads has prompted many a debate among financial experts, with some blaming it on the recent rise of bond yields, while others speculate that someone may have accidentally tipped a jar of mayonnaise into the mix.
The only thing we can be certain of is that, for the time being, commercial mortgage-backed securities are officially less popular than the infamous double-decker avocado, tomato and roast beef sandwich I brought to work for lunch yesterday. That’s right, the same sandwich that had my coworkers wrinkling their noses and declaring that it looked like roadkill wrapped in pita bread.
Only time will tell whether the spread situation will improve or continue to widen. In the meantime, I’ll be here spreading my own unique concoctions on my toast, unperturbed by the chaos of the financial world.
