Non-agency CMBS issuance last year sank to its lowest production level since 2012 and key real estate sectors remain under stress. But the agency multifamily MBS programs continued to grow. (Includes data chart.)

Gov. Andrew Cuomo’s 2022 budget proposal includes language that formalizes the inevitable shift from LIBOR to SOFR for most financial institutions.

Thanks to the COVID crisis, appraisal reductions in commercial MBS are rising rapidly and may be a harbinger of future loan losses, warns Kroll Bond Rating Agency.

CMBS delinquencies declined by 36 basis points to 7.81% in December, well below the peak of 10.34% in June, according to analytics provider Trepp.

Several factors will support new loan credit quality next year, including re-covering CRE fundamentals, capital market liquidity, demand for real assets and some degree of conservatism in underwriting, said Moody’s.

Issuance of rated non-agency MBS and ABS rose significantly during the third quarter, although both markets continued to lag behind 2019 on year-to-date volume. (Includes two data charts.)

The delinquency rate on commercial MBS in November slipped modestly thanks to continued COVID-related relief. The recovery ahead will be slow, particularly for the lodging and retail sectors.

The use of LIBOR as an index is slated to end in just under 13 months but the benchmark administrator has other ideas. One issue: legacy contracts.

Democrats said the Treasury’s decision to end the TALF facility at the end of the year was a political move to prevent the incoming Biden administration from stabilizing the economy.

As president, Joe Biden will have to negotiate with both sides of Congress, limiting sweeping policy changes, according to industry analysts.