A resurgence of conduit deals helped lift non-agency CMBS issuance in the first quarter of 2023. But agency multifamily securitization fell sharply. (Includes two data charts.)

The pipeline for commercial MBS issuance is starting to fill up after a slowdown tied to volatility from the regional bank failures. Longer term, higher interest rates are a concern for loans in outstanding CMBS.

Activity in the commercial MBS space will pick up again in the months ahead, said analysts.

A more permanent shift to hybrid work models will lower loans’ cash flows and make lenders less interested in refinancing office loans, according to Moody’s.

Ginnie reduces minimum required pool size for HMBS; Ares Management to issue non-QM MBS; S&P extends comment period on triple-net lease changes; Stifel builds out agency MBS unit; commercial MBS issuers urged to consider advertising.

Most of the major property groups in non-agency CMBS saw hefty declines in securitization in the fourth quarter, though lodging was stronger than most. Agency multifamily MBS was down in 2022 despite a modest fourth-quarter gain. (Includes two data charts.)

Agency MBS market recovering after dismal 2022; KBRA generally plans to decline reviewing RAC requests tied to switches from LIBOR to term SOFR in the commercial MBS market.

Governance and social risks are the main ESG factors that affect credit ratings of MBS and ABS, while environmental relevance remains low, according to Fitch Ratings.

The FHFA will significantly reduce a controversial fee for comingled securities in UMBS; no consistent trend in delinquencies and losses across MBS and ABS in December; term SOFR not an option as GSEs leave LIBOR behind.

Roughly $1.3 billion in newly delinquent CMBS loans were reported in December, most of which were nonperforming balloon loans reaching maturity.