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Petition for Rulemaking for SEC Rule 17g-5

November 18, 2025

Last week, CREFC submitted to the Securities and Exchange Commission (SEC) a Petition for Rulemaking regarding Rule 17g-5.

Dig deeper. The Credit Rating Agency Reform Act of 2006, aimed at ushering in greater credit rating transparency and heightened competition, produced new regulations including Rule 17g-5, which prohibits certain conflicts of interest for Nationally Recognized Statistical Rating Organizations (NRSROs).

• After the Financial Crisis, Rule 17g-5 was amended to include ABS-specific requirements mandating that issuers post information shared with any hired NRSRO on websites accessible by all NRSROs, with the goal of encouraging competing unsolicited ratings. 
• However, no unsolicited ratings have been issued on any transaction since implementation of the rule.
• Instead, these website posting requirements have created significant burdens, including reduced transparency due to restrictions on oral communications and legal uncertainty over timing requirements.

CREFC, along with SIFMA and MBA, submitted a Petition for Rulemaking requesting the removal of these posting requirements. Other Rule 17g-5 conflict-of-interest measures would remain in place, including:

• SEC certification of NRSROs;
• Separation of the production of credit ratings from sales and marketing activities; and
• Publication of detailed performance data regarding past credit ratings.

CREFC has also shared these concerns with SEC leadership and staff in meetings over the past several months.

• We will update membership with any developments related to Rule 17g-5, including the potential issuance of a proposed rulemaking.

Please contact Sairah Burki (sburki@crefc.org) with any questions. 

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CRE Securitized Debt Update

November 18, 2025

Private-Label CMBS and CRE CLOs

Five transactions totaling $6.2 billion priced last week:

1. BX 2025-VOLT, a $3.5 billion SASB backed by a floating-rate, five-year loan (at full extension) to Blackstone to refinance 10 data center properties across six markets.
2. STWD 2025-FL4, a $1.1 billion CRE CLO sponsored by Starwood. The managed transaction comprises 22 loan participations secured by 35 properties. The pool’s top-three property types are multifamily (82.9%), industrial (9%), and hotel (8.1%).
3. BLP 2025-IND2, a $620 million SASB backed by a floating-rate, five-year loan (at full extension) to Brookfield to refinance 20 industrial properties in seven states.
4. BSP 2025-44A, a $606.2 million CRE CLO sponsored by Benefit Street Partners.
5. UNIV 2025-APTS, a $431 million SASB backed by a floating-rate, five-year loan (at full extension) for a joint venture between Varde Partners and Hawkins Way to refinance three student-housing properties in Boston, Manhattan, and Brooklyn.

By the numbers - CMBS and CRE Volume Soars: Year-to-date private-label CMBS and CRE CLO issuance totaled $138.3 billion, representing a 36% increase from the $101.8 billion recorded for same-period 2024. 

Spreads Hold Steady

• Conduit AAA and A-S spreads were unchanged at +80 and +115. YTD, they are wider by 5 bps and 10 bps, respectively. 
• Conduit AA and A spreads were unchanged at +160 and +210. YTD, they are wider by 25 bps and 45 bps, respectively.
• Conduit BBB- spreads were unchanged at +475. YTD, they are wider by 50 bps.
• SASB AAA spreads were flat, in a range of +113 to +138, depending on property type.
• CRE CLO AAA and BBB- spreads were unchanged at +135 and +340, respectively.
  

Agency CMBS

• Agency issuance totaled $4.4 billion last week, comprising $2.5 billion of Fannie DUS, $1.4 billion of Freddie K and Multi-PC transactions, and $488.3 million of Ginnie-Mae Project Loan transactions.
• Agency issuance for the year totaled $131.1 billion, 31% higher than the $99.9 billion for the same period last year.
  

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Government Shutdown Ends: January 30 Looms as Next Deadline

November 18, 2025 

After 43 days, the federal government reopened November 12, ending the longest shutdown in U.S. history. 

The deal funds most agencies via a continuing resolution through January 30, 2026 and provides full-year funding for the Department of Agriculture, the Veterans Administration, military construction, and the legislative branch. 

• It guarantees back pay for federal workers and reverses layoffs imposed during the shutdown.
• The National Flood Insurance Program, which had lapsed along with the government funding, was also extended.

What it doesn’t do: The policy fight that triggered the stalemate remains unresolved.

• The Affordable Care Act (ACA) marketplace subsidies expire at the end of this year and many enrollees are likely to see premium increases. 
• Senate Democrats secured a commitment from Majority Leader John Thune (R-SD) to vote on the issue in December, but that vote will likely fall short of the 60 vote threshold to advance the issue. It’s not even clear if a clean extension will garner a simple majority. 
• However, the shutdown has brought this issue front and center and is likely to have an effect on midterm campaigning for both parties in 2026.

The government is funded through January, 30, 2026, but Congress will need to fund the remainder of the agencies by then or pass another CR to keep it open. There is concern that another partial shutdown could happen unless the parties make progress on healthcare issues. 

By the numbers: Seven Democratic senators and one independent who caucuses with Democrats voted on November 10 with Republicans to re-open the government, with the bill passing by a vote of 60-40. The move has drawn sharp rebuke from some wings of the Democratic party.

• Two of the Democrats, Dick Durbin (D-IL) and Jeanne Shaheen (D-NH) are retiring from Congress. The rest are not up for re-election until 2028 or beyond: John Fetterman (D-PA); Catherine Cortez Masto (D-NV); Maggie Hassan (D-NH); Tim Kaine (D-VA); Jacky Rosen (D-NV); and Angus King (I-ME).
• The lone Republican exception was Sen. Rand Paul (R-KY).

In the House, six Democrats voted with all but two Republicans to re-open the government on November 12. Only one of these members, Rep. Jared Golden (D-ME-2), has announced his retirement. 

• The remaining Democrats were Rep. Marie Gluesenkamp Perez (D-WA-3); Rep. Henry Cuellar (D-TX-28); Rep. Adam Gray (D-CA-13); Rep. Don Davis (D-NC-1); and Rep. Tom Suozzi (D-NY-3).
• On the GOP side, Reps. Thomas Massie (R-KY-4) and Greg Steube (R-FL-17) joined with the rest of the Democrats and voted against re-opening the government.

Why it matters: Although the House Democrats who crossed the aisle are from swing or moderate districts, they will have to defend this vote to the Democratic base and potential primary challenges. However, some could also use the vote to their advantage, framing it as evidence of effective governance or alignment with key voter priorities, depending on the district’s political landscape.

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