Agency CMBS Overview: May 2026 Agency CMBS Review

Research evidence excerpt

Agency CMBS Overview: May 2026 Agency CMBS Review

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Agency CMBS Overview

May 2026 Agency CMBS Review

Key takeaways 12 June 2026

Securitized Products Strategy• Agency CMBS spreads were unchanged in May. We expect they will slowly grind

United States narrower over the coming months.

• Good relative value vs Agency MBS and significant market liquidity should provide a Alan Todd, CFA

CMBS Strategist

positive technical backdrop for spreads. BofAS

+1 646 855 6383

• We keep our full-year gross issuance forecast at $205bn, but note that it could alan.todd@bofa.com

decrease if yields remain elevated. Nick O'Brien

BofAS

Agency CMBS issuance remained strong in March +1nicholas.obrien@bofa.com646 855 6366

The strong pace of Agency CMBS issuance slowed marginally last month as interest

rates rose. As of the end of the first week in June (6/5), YTD Agency issuance totaled

almost $90bn, which is about 38% ahead of same-period 2025 issuance. The jump in

volume was driven across sub-products, with issuance of Freddie K, Freddie Multi-PCs,

and Fannie GeMS contributing most on a dollar basis. We anticipate Agency CMBS Exhibit 1: Agency CMBS spreads

issuance will remain elevated this year despite the recent increase in Treasury yields as unchanged in May

both Fannie Mae and Freddie Mac had their caps increased to $88bn and are expected Agency CMBS spreads were unchanged over

the past month

to push to increase their lending activity. We expect full-year 2026 issuance to total

roughly $205bn. Benchmark Agency CMBS spreads to

Treasury

Spreads rangebound in May despite Treasury yield moves 10/9.5 TBA 6/433 WTD0 MTD0 YTD-12 Min31 Max45

Benchmark Agency CMBS spreads were basically unchanged last month, trading roughly GeMS A1 38 0 0 -4 38 42

sideways.