It has been anything but the summer doldrums for the CMBS private label market, as 20 deals priced in July, outpacing the 14 in June. Investor demand was robust, led by 15 single borrower (SB) transactions and five conduits. For the month, $12.4 billion priced, bringing the year-to-date issuance through July to a level 29% higher year-over-year (YoY). Following a very strong July, August activity could show signs of slowing. Based on our current visibility, up to 12 deals could launch in August, including six SBs, three conduits, two commercial real estate (CRE) collateralized loan obligations (CLO), and one Freddie Mac K-Series (Agency).
The July conduit benchmark last cash flow (LCF) AAA class was at an average of swaps (S) +88 basis points (bps) based on the five conduit deals that were priced between S +87 bps and S +92 bps. Three conduits were five-year deals and two were 10-year deals.
Rating Activity
In July, KBRA published pre-sales for 10 deals ($7.4 billion), including five SBs…