KBRA Releases Monthly CMBS Trend Watch

BY Business Wire | AGENCY | 09/06/22 04:59 PM EDT

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

August U.S. CMBS private label issuance of $6.2 billion was almost three times July?s $2.3 billion level. This brought the year-to-date (YTD) total to $59.1 billion, down 3% year-over-year. As the summer winds down, higher interest rates and inflation concerns remain, but based on our current visibility, there could be up to 14 deals that could launch in September. These include as many as seven single-borrower (SB) transactions, five commercial real estate collateralized loan obligation (CRE CLO) transactions, one conduit, and one Freddie Mac K-Series.

In August, KBRA published pre-sales for five deals ($6.3 billion) including two SB transactions ($3 billion), two conduits ($2 billion), and one Freddie Mac K-Series ($1.3 billion). August?s surveillance activity included rating actions on 789 classes consisting of 672 affirmations, 11 downgrades, and 106 upgrades. The activity was effectuated across 84 transactions including 43 Freddie Mac K-Series, 25 conduits, seven SB transactions, four re-remic transactions, four CRE CLOs, and one large loan.

The month?s edition also highlights our recent CMBS research publications.

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.