Asset managers believe agency commercial MBS is an attractive investment option following President Trump’s directive to the GSEs to buy $200 million in agency MBS.

Recent cases involving subprime auto lender Tricolor and auto parts manufacturer First Brands prompted the initiative.

Securitization of industrial properties, including data centers, was the hottest sector in non-agency commercial MBS last year. Meanwhile, all three agencies saw hefty increases in multifamily MBS issuance. (Includes two data tables.)

The commercial MBS delinquency rate climbed in December. Record CMBS issuance as well as a fading maturity wall are expected in 2026.

More than $100 billion of loans in commercial MBS have maturity dates this year. Refinancing the loans could be difficult given interest rate movements and declining revenues from commercial properties.

President Trump this week said he plans to ban large institutional investors from acquiring single-family homes. SFR securitization volume hit $8.65 billion last year.

The $288 million deal is focused on multifamily properties. To this point, the bank’s securitization activity has solely been ABS.

The $3.46 billion issuance is one of the largest-ever commercial MBS. The data center deal has 10 co-originators including Citi Real Estate Funding, which funded 15.00% of loans in the CMBS.

The real estate investment and property management firm’s securitization is sized at $282.4 million.

The request came from the CRE Finance Council, the Mortgage Bankers Association and the Securities Industry and Financial Markets Association. The groups said the disclosure requirements have negatively impacted the commercial MBS market.