New data released from the Financial Industry Regulatory Authority's (FINRA) Trade Reporting and Compliance Engine (TRACE) showed that the average weekly CMBS trading volume has been decreasing since June.
June had the highest trading volume, at $42.9 billion, followed by $36.9 billion in August.
Barclays Capital analysts explained that the variations in monthly volumes are influenced by, among other factors, the distribution of new private-label deals and the number of trading sessions in every month.
Analysts said that about $18.3 billion in private-label new issuance was launched since June, but even with this number included, the declining trend remains.
Analysts said that instead what has been driving this trend in decline of daily trading is the average trade size, which has dropped quite substantially since June, to about $4 million in November from $6.5 million in June.
"A similar trend can be observed in the distribution of trades by size bucket," Barclays analysts said. "Trades below $10 million continue to dominate, and their share increased from 82% in May/June to 90% in November."