KBRA Releases Monthly CMBS Trend Watch

BY Business Wire | AGENCY | 06/03/22 04:00 PM EDT

NEW YORK--(BUSINESS WIRE)-- KBRA releases the May 2022 issue of CMBS Trend Watch.

Although CMBS private label issuance is up 41% year-over-year, activity has meaningfully slowed due to various headwinds. Actual and contemplated Federal Reserve actions have taken their toll, while inflation and geopolitical concerns continue to weigh on markets. While there is much uncertainty on the horizon, we currently have visibility into a number of deals that could launch through June 2022, including a handful of single-borrower (SB) transactions, two to three single-family rentals (SFR), two conduits, and one Freddie Mac K-Series deal.

In May, KBRA published pre-sales for two conduit deals ($1.4 billion). May?s surveillance activity included rating actions on 506 classes consisting of 473 affirmations, 22 downgrades, and 11 upgrades. The activity was effectuated across 48 transactions including 24 conduits, 11 SB transactions, seven Freddie Mac K-Series, five commercial real estate collateralized loan obligations (CRE CLO), and one re-remic. There were also 32 KBRA Performance Outlook (KPO) changes: eight to Outperform from Perform, 17 to Perform from Underperform, and seven to Underperform from Perform.

The month?s edition also highlights recent KBRA research publications that may be of interest.

Click here to view the report.

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA?s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Source: KBRA

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.