Fitch downgrades BMO CMBS classes as troubled multifamily loans raise loss risk

Why this matters

Capital markets activity continues to be defined by the rotation from bank balance sheets to non-bank lenders. Private credit funds have raised record dry powder; banks have tightened CRE underwriting standards for the sixth consecutive quarter. The result is a market where well-sponsored deals clear, and marginal credit pays a meaningful spread to do so. For LPs, the allocation conversation has shifted decisively toward real estate debt, with equity allocations being deployed more selectively into operator-led platforms.

Editorial analysis · Real Estate Trail Editorial

On the RET wire

• Disclosed capital deal value tracked in November 2026: $2.7B across 8 reported transactions.

Computed from Real Estate Trail’s own tracked coverage

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