Amid the geopolitical tensions in the Middle East and U.S. involvement, the CMBS private label market continued to demonstrate its strength, buoyed by high investor demand. The second quarter ended on an upbeat note, with 13 deals priced in June, including 12 single borrower transactions (SB), and one conduit, for a total issuance volume of $7.1 billion. On a year-over-year (YoY) comparison, year-to-date issuance through June was up 33.1%. Based on our current visibility, there could be as many as 19 deals that launch in July, including eight SB, seven conduit, three commercial real estate (CRE) collateralized loan obligations (CLO), and one Freddie Mac K-Series (Agency).
The June conduit benchmark last cash flow (LCF) AAA class was at swaps (S) +95 basis points (bps) based on the one conduit deal that was priced. The conduit was a five-year deal.
Rating Activity
In June, KBRA published pre-sales for six deals ($3 billion), including two SB ($587 million), two conduits ($1.25…