New issuance of non-agency CMBS has been stalled for a month and prospects are dim for much of a comeback until the market gets a clearer view of the impact of the coronavirus.
Following pressure from industry participants and lawmakers, the Federal Reserve added legacy commercial MBS and CLOs to the TALF. Industry is hoping that eventually non-QM assets might be covered.
AG Mortgage Investment Trust filed a lawsuit to stop Royal Bank of Canada from selling commercial MBS the company is a counterparty to. The bank for now has decided to postpone the auction.
On the same day that the Federal Reserve bought its first $1 billion in agency multifamily MBS, it purchased more than $41 billion in agency single-family MBS.
Delinquencies in commercial MBS loans are likely to jump due to the economic impact arising from the COVID-19 outbreak, with hotels and malls likely to be the early casualties.