The net asset value of the Blackstone Real Estate Income Fund dropped by 24% to $443 million as of March 31 from $584 million at the beginning of the year.

The $413.3 million commercial MBS backed by a portfolio of hotels was originally announced in February but postponed due to market volatility caused by the coronavirus pandemic.

The bulk of loans from the July 6 Term ABS Loan Facility have gone to investors in legacy commercial MBS.

The delinquency rate on commercial MBS could still be headed higher, but with smaller increases, according to industry experts.

And even worse, industry analysts expect loans collateralized with commercial properties to see sharper increases in delinquencies for June.

Arbor Realty Trust issued a $727.2 million non-agency multifamily MBS. For the most part, these deals are uncommon because the GSEs dominate the market.

Production of commercial MBS for 2020 is expected to be less what was forecast earlier in the year, according to industry analysts.

The fight between WeWork and its tenants has cast doubt on the company’s ability to pay rent, which in turn will impact billions of dollars in commercial MBS.

The increase, though, is relatively modest compared to expectations, as more borrowers likely became 30-day delinquent on May 1.

New issuance of non-agency CMBS has been stalled for a month and prospects are dim for much of a comeback until the market gets a clearer view of the impact of the coronavirus.