The next few years might be even more challenging for mall loans backing commercial MBS, with refinancing seen as difficult and delinquencies ticking up, according to rating agencies.
Single-family rental securitization issuance in 2019 fell by 35%. Invitation Homes, the largest issuer of such deals in 2018, avoided the market entirely, focusing instead on more attractive types of financing.
Private-label commercial MBS issuance likely will climb to $120 billion in 2020 thanks to low interest rates and benign commercial real estate conditions. But there's a never-ending storm cloud: retail.