KBRA Releases Monthly CMBS Trend Watch

BY Business Wire | AGENCY | 11/03/22 09:31 AM EDT

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

U.S. CMBS private label issuance fell for the second consecutive month in October. The year-to-date (YTD) total stands at $66.6 billion, down 24.1% year-over-year (YoY). While the interest rate environment and economic concerns continue to weigh on deal flow, there are up to 10 deals that may launch in November, including as many as three single-borrower (SB) transactions, three conduits, two commercial real estate collateralized loan obligation (CRE CLO) transactions, and two Freddie Mac K-Series.

In October, KBRA published pre-sales for four deals ($3.9 billion) including two Freddie Mac K-Series ($2.2 billion), one conduit ($832.5 million), and one CRE CLO transaction ($860.1 million). October?s surveillance activity included rating actions on 468 classes consisting of 450 affirmations, 11 downgrades, two upgrades, four Watch Downgrades, and one Watch Upgrade. The activity was effectuated across 39 transactions including 29 conduits, five SB transactions, three Freddie Mac K-Series, one CRE CLO, and one small-balance commercial transaction.

This month?s edition also highlights KBRA?s six recent CMBS research pieces on a variety of topics. The reports included coverage of topical CMBS issues such as upcoming office lease expirations, delinquency trends, and Hurricane Ian exposure in the U.S. We also published a piece on European CMBS surrounding higher interest rate cap strike rates and refinance risk.

Click here to view the report.

Related Publications

  • CMBS Office Lease Roll: Markets and Transactions Examined
  • CREFC Capital Markets Conference Recap
  • KBRA-Rated CMBS, Freddie Mac, and CRE CLO Exposure to Hurricane Ian
  • KBRA-Rated SFR Exposure to Hurricane Ian
  • CMBS Loan Performance Trends: October 2022
  • Rising Interest Rates to Increase Hedging Extension Costs and Refinance Risk

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.

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