Moody’s Investors Service in a recent report explores the securitization of loans backed by data centers, noting the nascent asset class is susceptible to cash flow volatility.

Arbor Realty Trust plans to issue non-agency commercial MBS stocked with multifamily loans that are eligible for sale to the GSEs, expecting better execution for the loans.

The outlook for hotels and suburban offices remains questionable because excess supply is likely driving up default risk in commercial MBS backed by these property types, says Moody’s.