Arbor, MF1 Lead Way as Top CRE CLO Issuers

With commercial real estate-backed collateralized loan obligations (CRE CLOs) under intense scrutiny, CRED iQ’s issuer rankings reveal key shifts in risk and opportunity. CRED iQ’s latest quarterly analysis uncovers the distress rates, modification trends, and portfolio performances within the CRE CLO ecosystem.

CRED iQ’s research team revisited our quarterly CRE CLO rankings analysis this week.  We explored aggregated data by issuer to uncover opportunities and risks within this closely watched sector. 

With updated remittance data as of March 31, 2025, CRED iQ evaluated the top 20 CRE CLO issuers and their performance. Our aim was to understand the percentage breakdown of delinquency and overall distress within these major CRE CLO issuers’ portfolios and then measure the scale of those portfolios and their associated rankings within the group. We also wanted to explore the percentage of loans that were modified by each issuer. 

Arbor Realty Trust, with $5.7 billion of volume from five deals, held its position as the largest CRE CLO issuer, with an impressive 83.9 percent of loans modified, which was second only to TPG (85.8 percent). These modifications appear effective, reflected in a low 5 percent delinquency rate and a manageable 17.4 percent overall distress rate. Arbor’s proactive approach to loan restructuring underscores its resilience in a challenging market. (Please note that since the timing of the data updates for this report, one of Arbor’s deals was paid off in full.)  

MF1, with $5.6 billion of CRE CLO volume from six transactions, was a close second. It reports a 13.7 percent distress rate but raises concerns with 69 percent of loans on the special servicer watchlist, the highest percentage in our analysis. With only 23.4 percent of loans modified, MF1’s portfolio warrants close monitoring as potential risks loom.

Ready Capital, with $3.2 billion of CLO volume from six loans, faces significant headwinds, posting the highest distress rate among the top five issuers at 39.8 percent. This elevated risk profile highlights the challenges some issuers face in stabilizing their portfolios.

With $2.4 billion from six transactions, Benefit Partners maintains a steady presence in the top five, though specific distress and modification metrics were not highlighted in this analysis. Its consistent deal volume signals a strong market foothold.

Rounding out the top five was Bridge Investment Group, with $2.3 billion from four deals. Bridge Investment Group stands out with the lowest distress rate in our study at just 4 percent, bolstered by a robust 74.8 percent loan modification rate. This performance underscores the value of strategic loan management in mitigating risk.

MF1 leads with 69 percent of its loans on the watchlist, followed by Rialto (67.3 percent) and TPG Real Estate Finance (64.7 percent). Elevated watchlist activity signals potential vulnerabilities, urging issuers to act swiftly to address underlying issues.

In March 2025, in a strategic move, TPG Real Estate Finance Trust announced the pricing of TRTX 2025-FL6, a $1.1 billion CRE CLO with a 30-month reinvestment period and an 87.5 percent advance rate. This issuance, which includes the redemption of the 2019-FL3 deal, reflects TPG’s confidence in the CRE CLO market and its ability to secure favorable financing terms at Secured Overnight Financing Rate plus 1.83 percent. While not yet included in our data set, this deal signals TPG’s ongoing influence in the sector.

As CRE CLO issuers grapple with distress and modification strategies, the market’s trajectory hinges on their ability to adapt. High distress rates, as seen with Fortress and Ready Capital, underscore the need for proactive loan management. Meanwhile, issuers like Arbor and Bridge Investment Group demonstrate that strategic modifications can significantly mitigate risk. Investors should closely monitor watchlist trends and modification rates as leading indicators of portfolio health.

CRED iQ’s CRE CLO distress rate combines delinquency (30-plus days past due or nonperforming at maturity) and specially serviced loan metrics to provide a comprehensive view of portfolio risk. Our analysis excludes Freddie Mac, Fannie Mae, Ginnie Mae and CMBS loan metrics, focusing solely on CRE CLO performance. By aggregating data across issuers, we uncover actionable insights into the opportunities and challenges shaping this critical market.

Mike Haas is the founder and CEO of CRED iQ