As we approach year-end, commercial mortgage-backed securities (CMBS) private label issuance is on track to have its strongest year since 2007. Helping us get there, our current visibility shows up to 21 potential deals in November including eight single-borrower (SB), seven conduit, five commercial real estate (CRE) collateralized loan obligations (CLO), and one Freddie Mac K-Series (Agency) deal. In October, 15 deals totaling $10.8 billion priced, representing a 17.1% increase on a year-to-date (YTD) year-over-year (YoY) basis.
The October conduit benchmark last cash flow (LCF) AAA class was at an average of swaps (S) +83 basis points (bps) based on the three conduit deals that were priced between S +82 bps and S +84 bps. Two conduits were five-year deals, and the other was a 10-year deal.
Rating Activity
In October, KBRA published pre-sales for seven deals ($6.6 billion), including four SB ($3.3 billion), two conduits ($2 billion), and one Agency ($1.3 billion). Links to the…