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Policy and Capital Markets Briefing

CREFC’s Policy and Capital Markets Briefing provides CREFC members with insights and analyses on events impacting the industry.

 

Recent Headlines from our Sept. 16th, 2025 issue

  • CREFC Participates in Treasury Roundtables on GSE Reform
  • Section 899 Again? Officials Float Return of “Revenge Tax”
  • FSOC Public Session Highlights Bank Regulatory Priorities
  • Confirmed: Fed Nomination Fast Tracked
  • Senate Deposit Insurance Hearing
  • CREFC Enhances CRE CLO Transparency with New Investor Reporting Standards
  • Government Funding Update
  • Economy, the Fed, and Rates…

 

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CRE Securitized Debt Update

September 30, 2025

Private-Label CMBS and CRE CLOs

Nine transactions totaling $7.4 billion priced last week:

  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.

Contact Raj Aidasani (raidasani@crefc.org) with any questions.

Contact 

Raj Aidasani
Managing Director, Research
646.884.7566
CRE Securitized Debt Update Chart

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
CRE Securitized Debt Update
September 30, 2025
Nine transactions totaling $7.4 billion priced last week.
More info...

News

CRE Securitized Debt Update

November 10, 2025

Private-Label CMBS and CRE CLOs

Four transactions totaling $3.5 billion priced last week:

  1. BX 2025-JDI, a $1.5 billion SASB backed by a floating-rate, five-year loan (at full extension) for Blackstone to refinance 94 primarily industrial properties in seven states.
  2. ELP 2025-ELP, an $859 million SASB backed by a fixed-rate, five-year loan for EQT Real Estate, GIC, Blackstone, and APG to refinance a portfolio of 60 industrial properties in nine states.
  3. BBCMS 2025-5C38, an $834.2 million conduit backed by 41 five-year loans secured by 76 properties from Barclays, Goldman, Citi, LMF, Rialto, Deutsche, Starwood, Benefit Street, and UBS.
  4. A10 2025-FL6, a $350 million CRE CLO sponsored by A10. The managed transaction comprises nine whole loans and 12 participations secured by 27 properties. The pool’s top three property types are multifamily (54%), retail (27.9%), and industrial (9.6%).

By the numbers: Year-to-date private-label CMBS and CRE CLO issuance totals $132.1 billion, a 31% increase from the $101.1 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 unchanged in a range of +113 to +137, depending on property type.
  • CRE CLO AAA and BBB- spreads were unchanged at +135 and +340, respectively.

Agency CMBS

  • Agency issuance totaled $3.9 billion last week, comprising $2.1 billion in Freddie Multi-PC and K transactions, $1 billion in Fannie DUS transactions, and $755.4 million in Ginnie-Mae Project Loan transactions.
  • Agency issuance for the year totaled $126.5 billion, 33% higher than the $95.5 billion for the same period last year.
Contact Raj Aidasani (raidasani@crefc.org) with any questions.

Contact 

Raj Aidasani
Managing Director, Research
646.884.7566

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
CRE Securitized Debt Update
November 10, 2025
Four transactions totaling $3.5 billion priced last week.
More info...

News

NDAA Passage Includes Housing Bill

October 21, 2025

While the ongoing government shutdown has kept the House out of town, the Senate advanced the annual National Defense Authorization Act (NDAA), which included bipartisan housing legislation. 

Why it matters: On July 29, the Senate Banking Committee unanimously advanced the ROAD to Housing Act of 2025, which includes a host of bipartisan provisions aimed at boosting housing supply. 

  • The bill was added to the NDAA, which passed the Senate 77-20 on Oct. 9.
  • A host of other policy amendments were included in NDAA, though not all of them are likely to be included when the House takes up the legislation. 

Go deeper: The ROAD to Housing Act incorporates many bipartisan priorities to reduce regulation and boost housing supply. However, the banking committee bill does not add funding for programs and will require the White House and congressional appropriators to deliver funds on key programs. 

  • Increasing Housing in Opportunity Zones: Enables the HUD Secretary to give added weight to applicants for competitive HUD grants that are located in, or primarily serve, designated Opportunity Zones to support housing preservation and construction.
  • Build More Housing Near Transit Act: Amends the Capital Investment Grants (CIG) program in the Federal Transit Administration to provide an optional increased rating in the Federal Transit Administration’s evaluation process for projects in areas that establish pro-housing policy near public transportation routes.
  • Revitalizing Empty Structures into Desirable Environments (RESIDE) Act: Creates a competitive pilot discretionary program within the HOME Investment Partnerships program if the annual appropriation exceeds $1.35 billion to convert vacant and abandoned buildings into attainable housing. However, the White House had proposed eliminating the HOME program in its budget. 
  • Housing Affordability Act: Requires the Federal Housing Administration (FHA) to study multifamily loan limits and then grants HUD rulemaking authority, with FHA input, to adjust those limits to better match housing market costs and enhance affordability.

What’s next: While the House Financial Services Committee is making housing a priority, it is unlikely the House will pass the ROAD to Housing Act as is.

  • The overall House strategy on NDAA is not yet clear, but certain provisions could be excluded when the House considers the bill.
  • House lawmakers will want to put their own stamp on any housing bill. Committee action has been delayed due to the shutdown. 
  • Housing legislation could eventually be included in a 2025 NDAA, but if the House significantly differs on a housing bill, the Senate may add it to other must-pass legislation. 

Contact David McCarthy (dmccarthy@crefc.org) with questions.

Contact 

David McCarthy
Managing Director,
Chief Lobbyist, Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
NDAA Passage Includes Housing Bill
October 21, 2025
While the ongoing government shutdown has kept the House out of town, the Senate advanced the annual National Defense Authorization Act (NDAA), which included bipartisan housing legislation.
More info...

News

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.

Credit Market Concerns
 
  • Regional bank fraud disclosures: Zions disclosed a $50 million charge-off, and Western Alliance revealed fraud involving commercial real estate loans, with disclosures referencing links to the same borrower group. This triggered a selloff that wiped $100 billion from bank market values on Thursday.
  • Dimon's 'cockroach' warning: JPMorgan CEO Jamie Dimon warned "when you see one cockroach, there are probably more," referencing the bank's $170 million hit from Tricolor Holdings' bankruptcy and broader credit concerns.

Implications For the CRE Finance Market

  • Rates: A sub-4% ten-year offers a modest boost to fixed-rate financing and valuations. For floating-rate borrowers, the policy path—with another quarter-point cut widely expected—matters more than the long end.
  • Liquidity: The spike in standing repo facility usage and Powell's remarks about tightening liquidity argue for closer monitoring of bank capacity for warehouse lines and term lending. If money-market stresses re-emerge, credit spreads could widen and loan closings could slow.
  • Renter nation: Renter households rose 2.7% in the year through Q2, compared with almost no growth in homeowner households. Today's young adult is less likely to own a home than in the past, with the median age of a first-time buyer rising to a record 38 in 2024.
  • Property-level fundamentals: The renter growth dynamic supports multifamily demand, especially smaller units. At the same time, furniture and materials tariffs can lift turn costs and operating expenses at the margin, which matters for value-add strategies with heavier unit renovation plans.
  • Credit quality scrutiny intensifies: The fraud cases at Zions and Western Alliance involving commercial mortgage loans could potentially tighten underwriting standards across the sector.

Go deeper: You can download CREFC’s one-page MarketMetrics, which includes statistics covering the economy and the CRE debt capital markets, here.
 

Contact Raj Aidasani (raidasani@crefc.org) with any questions.

Contact 

Raj Aidasani
Managing Director, Research
646.884.7566
Data chart representing Economy, The Fed and Rates

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Economy, the Fed, and Rates…
October 21, 2025
The government shutdown is delaying key releases and, if it persists, could trim roughly 0.1 percentage point of GDP per week.
More info...

News

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. 

The session marked a productive exchange of ideas and perspectives from across the real estate lending sector, with Treasury officials largely in listening mode.
  • Treasury will continue to hold similar sessions next week. CREFC’s Pendergast will attend a Roundtable focused on the GSEs’ multifamily business. 
With heightened focus on the future of the GSEs, including President Trump’s comments and social media posts about a potential IPO, CREFC appreciates the opportunity to share its members’ perspectives with the Administration.

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

Contact 

Sairah Burki
Managing Director,
Head of Regulatory Affairs and Sustainability
703.201.4294
sburki@crefc.org

David McCarthy
Managing Director,
Chief Lobbyist, Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
Image of individuals sitting around a table

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
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.
More info...