Fed reduces redemption cap for Treasury securities, allows agency MBS runoff to proceed; Annaly to issue securitization with HELOCs; non-agency MBS term financing transaction from PIMCO.

A proposal from S&P would have a wide-ranging impact on ratings of commercial MBS. Fitch is also considering allowing data center ABS to carry additional leverage.

FICC proposes volatility event charge; securitization-as-a-service offering from Financely; Morningstar acquires DealX.

SFA and ICE developing securitization index; securitization involving professional sports on the horizon; rating services comfortable with Trimont acquiring Wells Fargo’s third-party commercial mortgage servicing business; deal structuring tool from dv01.

Although overall non-agency CMBS issuance fell slightly in the fourth quarter, volume was up in deals backed by retail and lodging properties. Agency multifamily activity quickened in the second half of 2024 but still came up a little short of the previous year. (Includes two data tables.)

Analysts tracking the commercial real estate sector see more pain for the office sector before a recovery process starting in 2026.

The changes reflect the risk of collateral impairment and challenges in refinancing tied to climate-related issues.

The Trump administration has initiated an effort to end leases on office space used by the federal government. Some properties in commercial MBS have government leases but few deals face elevated exposures, according to S&P.

Issuance of single-family rental securitizations has seen sharp swings in recent years. Moderate growth is expected this year and deal performance is forecast to remain strong.

Many analysts are projecting increases for issuance of MBS and ABS in 2025. Delinquencies are also expected to rise, though not to troublesome levels.