New issuance of commercial mortgage securities increased substantially during the third quarter, with both the private and agency sectors posting solid gains, according to a new Inside MBS & ABS analysis. A total of $53.14 billion of income properties were securitized during the third quarter, a 33.4 percent increase from the previous period and the strongest three-month output since the second quarter of last year. That brought year-to-date issuance to $137.74 billion, off 12.4 percent from the pace set in the first nine months of 2015, and it would take a huge fourth-quarter surge for the market to reach last year’s total. Non-agency commercial MBS production rose...[Includes one data table]