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CRE Securitized Debt Update

September 30, 2025

Private-Label CMBS and CRE CLOs

1. ESA 2025-ESH, a $1.9 billion SASB backed by a floating-rate, five-year loan (at full extension) for a joint venture between Blackstone and Starwood to refinance a portfolio of 220 extended-stay hotels operated by Extended Stay America, Inc., totaling 24,560 rooms across 33 states.
2. BSPRT 2025-FL12, a $1.1 billion CRE CLO sponsored by Benefit Street Partners. The managed transaction comprises 44 loans secured by 73 properties. The pool’s top three property types are multifamily (61.8%), hotel (22.3%), and industrial (12.1%).
3. BANK5 2025-5YR17, a $1 billion conduit backed by 44 five-year loans secured by 66 properties from JPMorgan, Morgan Stanley, Wells, and BofA.
4. NRTH 2025-PARK, a $900 million SASB backed by a floating-rate, five-year loan (at full extension) for NorthPark Management to refinance the 1.9 million square foot NorthPark Center super-regional mall in Dallas.
5. BMO 2025-C13, an $814.2 million conduit backed by 47 10-year loans secured by 89 properties from BMO, Deutsche, Key, Citi, Goldman, JPMorgan, Zions, Benefit Street, LMF, Starwood, and Greystone.
6. WFCM 2025-5C6, a $622.7 million conduit backed by 26 five-year loans secured by 51 properties from Wells, JPMorgan, LMF, Rialto, Argentic, Citi, Goldman, and UBS
7. VTR 2025-STEM, a $475 million SASB backed by a fixed-rate, four-year loan for Ventas and GIC to refinance two life-science properties totaling 811,000 square feet in Pennsylvania.
8. HAVN 2025-MOB, a $278.3 million SASB backed by a floating-rate, five-year loan (at full extension) for Welltower and Wafra to refinance 22 medical office properties in 13 states.
9. WFCM 2025-AURA, a $275 million SASB backed by a floating-rate, five-year loan (at full extension) for BTG Pactual and Morning Calm Management to refinance a portfolio of 24 industrial properties totaling 4.8 million square feet across Ohio and Michigan.

By the numbers: Year-to-date private-label CMBS and CRE CLO issuance totals $114.1 billion, representing a 43% increase from the $79.6 billion recorded for same-period 2024. 

Spreads Unchanged 

• Conduit AAA and A-S spreads were unchanged at +76 and +113, respectively. YTD, AAA and A-S spreads are wider by 1 bp and 8 bps, respectively. 
• Conduit AA and A spreads were unchanged at +160 and +190, respectively. YTD, they are each wider by 25 bps.
• Conduit BBB- spreads were unchanged at +475. YTD, they are wider by 50 bps.
• SASB AAA spreads held steady in a range of +105 to +132, depending on property type.
• CRE CLO AAA and BBB- spreads were unchanged at +130 and +335, respectively.

Agency CMBS

• Agency issuance totaled $3.4 billion last week, comprising $1.4 billion of Fannie DUS, $1.2 billion of Freddie K, Q, and Multi-PC transactions, and $797.3 million of Ginnie Mae Project Loan transactions.
• Agency issuance for the year totals $105.7 billion, 39% higher than the $75.9 billion for same-period 2024.
  

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NDAA Passage Includes Housing Bill

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Economy, the Fed, and Rates…

October 21, 2025

Economic Data 

• Shutdown distorts the picture: The government shutdown is delaying key releases and, if it persists, could trim roughly 0.1 percentage point of GDP per week, leaving policymakers "semi-blind" on the data.
• Inflation (near-term read): PriceStats points to 0.24% month-over-month for September, lifting the annual pace to 2.66%, the highest since October 2023. The strongest category was household equipment and furniture, now above 5% year-over-year, consistent with tariff costs feeding into prices of import-heavy categories (e.g., furniture, appliances), not local services.
• Labor market is weakening at the margin: Fed Chair Powell said "the downside risks to employment have risen," noting that private-sector gauges and internal research show cooling conditions; ADP estimated companies shed 32,000 jobs in September.
• Growth mix remains uneven: The AI investment boom has supported output, but the expansion is increasingly driven by wealth effects among stock-owning households, while lower-income consumers are being squeezed.

Federal Reserve: Policy Signals & Debate

• Bias toward another cut (Oct 29): Powell said longer-term inflation expectations are "aligned with our 2% goal" and indicated the Fed could halt quantitative tightening "in the coming months."
• "Proceed with care": Governor Christopher Waller backed continued easing but not a larger 50-basis-point move, citing mixed signals on growth and jobs.
• What markets price: Futures imply very high odds of a quarter-point cut on October 29, with debate intensifying beyond year-end as conflicting data and the shutdown muddle visibility.

Treasury Yields & Market Dynamics

• 10-year breaks below 4%: The 10-year Treasury yield fell below 4% last week (3.97%), its lowest level since April, driven by regional bank credit concerns and trade tensions, though it later recovered as fears abated.
• Repo market stress emerges: Banks used the Fed’s Standing Repo Facility for more than $15 billion—the largest two-day use since the pandemic—while the overnight repo benchmark (SOFR) printed 4.29% Thursday and 4.30% Friday, briefly above the 4.25% upper bound of the policy range. The episode appears settlement-related and short-lived, but it highlights tighter reserves and supports a slower pace of balance-sheet runoff.
  

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CREFC Participates in Treasury Roundtables on GSE Reform 

September 16, 2025

On September 8, CREFC’s President & CEO Lisa Pendergast, along with leaders from other CRE/Multifamily trade organizations and think tanks, met with senior Treasury officials to discuss GSE reform, strategies around an exit from conservatorship, and potential privatization. 

• Treasury will continue to hold similar sessions next week. CREFC’s Pendergast will attend a Roundtable focused on the GSEs’ multifamily business. 

Contact Sairah Burki (sburki@crefc.org) or David McCarthy (dmccarthy@crefc.org) with any comments or questions.

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New Bank Capital Proposal Expected in the Coming Months

October 28, 2025

According to an October 22 Bloomberg article, the Federal Reserve has shared with other regulators an outline of a revised bank capital proposal, which would significantly reduce bank capital requirements originally proposed under the Biden administration.

The new proposal, which represents the Fed’s latest attempt to implement Basel updates in the U.S., would result in a 3% - 7% increase in capital requirements for most big banks.

• This estimate is considerably lower than the 19% increase in the 2023 proposal. (A reproposal last fall would have likely reduced the capital increase to 9%.)

Go deeper: The regulators are weighing an opt-out for mid-sized banks if they adhere to certain requirements. 

• Banks are also urging the elimination of the dual capital calculation from the Biden-era proposal, where the higher of the standardized and advanced approaches would have to be applied.

What’s next: The article states that the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) are in general agreement regarding the contours of the proposal. 

• Fed Vice-Chair of Supervision Michelle Bowman has indicated the proposal’s release in Q4’25 or Q1’26.
• CREFC will monitor developments closely and provide comments on elements of the proposal that have CRE implications.

In other capital-related news, the Fed released on Friday the models and methodologies behind the bank stress tests. 

• The Fed will now seek public comment on these scenarios each year before finalizing them. As reported by Politico, this move marked “some of the most drastic changes to the annual exercises since the 2008 financial crisis.”
• Fed Governor Michael Barr, the previous Vice-Chair of Supervision, dissented, stating that these process changes would make the stress tests “weaker and less credible.”

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

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