Although ARI has leverage in its portfolio, this CMBS new issue from GS tells me that the ARI NAV is undervalued:
NEW YORK (Dow Jones)--The $1.4 billion commercial mortgage-backed security offered by Goldman Sachs Group Inc. (GS:...) priced late Wednesday. The fixed rate bond was being sold via the private Rule 144a market and joint lead managers were Goldman Sachs (GS:...) and Citigroup Global Markets. The $532.01 million 9.73-year triple-A rated tranche priced at 125 basis points over swaps, a benchmark, to yield 4.655%. The deal is dubbed GSMS2011-GC3. About $8 billion in new CMBS have either been sold or are being marketed so far this year. Estimates on total issuance for the year range from $35 billion to $45 billion for the year. Last year, about $10 billion in CMBS were sold. -By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@ dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/nae/al?rnd=0XeOnsaXGoWGNpITvxbnpA%3D%3D. You can use this link on the day this article is published and the following day.