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CMBS Issuance Drops in Q3, JPMorgan Securities Remains Most Active
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CMBS issuance by U.S. private-label entities totaled $17.6 billion during the third quarter, bringing year-to-date issuance to just north of $58 billion, according to research by Trepp. That represents a nearly 4% drop from the $60.4 billion that had been issued at the same point a year ago.
Trepp predicts total issuance for 2018 to fall in the $77 billion to $80 billion range. Total issuance last year reached $86.4 billion. Collateralized loan obligations (CLOs) aren’t included in that figure.
Trepp points out there have been 20 CLO deals, totaling $10.1 billion, priced so far this year. By the close of the year, a dozen more single-borrower transactions are anticipated to be brought to market, along with as many as six conduit transactions. Single-borrower deals have outpaced the number of conduit deals priced this year by more than double, and conduit issuance is down 13% from 2017’s level.
The most-active CMBS bookrunner remains JPMorgan Securities, with 16 deals totaling $9.7 billion for a 16.8% share of the overall market, according to Trepp. Deutsche Bank followed with with 11 deals totaling $7.9 billion, and Goldman Sachs had 12 deals totaling $6.5 billion.
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