Report|6 Mar 2026

CMBS Trend Watch: February 2026

Following a robust start to the year for commercial mortgage-backed securities (CMBS) private-label issuance, the momentum continued into February. Seventeen deals closed totaling $15.2 billion, bringing the year-to-date (YTD) total to $23.2 billion (30 deals). Commercial real estate (CRE) collateralized loan obligation (CLO) issuance in February included three deals totaling $2.6 billion. While stable capital markets, sustained borrower and investor demand, and a robust pipeline of maturing loans have been supporting issuance, current geopolitical events can lead to increased market volatility. For March, based on our current visibility, up to 17 deals could launch, including eight single-borrower (SB), four conduits, four CRE CLOs, and one Freddie Mac fixed-rate K-Deal (Agency).

The February conduit benchmark last cash flow (LCF) AAA class was at an average of swaps (S) +71 basis points (bps) based on the three conduit deals that were priced between S +67 bps and S +73 bps. Two of…

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