KBRA Releases Monthly CMBS Trend Watch

BY Business Wire | AGENCY | 12/02/22 03:19 PM EST

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

U.S. CMBS private label issuance continues to be adversely affected by rising interest rates and a challenging economic landscape. The resulting market volatility continues to take a toll on new deal volume, which fell for the third consecutive month in November. The year-to-date (YTD) total stands at $69.4 billion, down 32.9% year-over-year (YoY). Based on current visibility, which is somewhat murky, there could be two deals that may launch in December. These include one single-borrower (SB) transaction and one Freddie Mac K-Series.

In November, KBRA published pre-sales for seven deals ($6 billion) including three conduit ($2.6 billion), two single-family rental ($1.3 billion), one Freddie Mac K-Series ($1.3 billion), and one commercial real estate collateralized loan obligation (CRE CLO) transaction ($814.8 million). November?s surveillance activity included rating actions on 674 classes consisting of 613 affirmations, 27 upgrades, 22 downgrades, nine Watch Upgrades, and three Watch Downgrades. The activity was effectuated across 69 transactions including 34 conduits, 13 SFR transactions, 13 SB transactions, five large loan transactions, three small balance commercial transactions, and one CRE CLO transaction.

The month?s edition also highlights our recent KBRA research publications, which cover various topical issues.

Click here to view the report.

Related Publications

  • CMBS 2023 Sector Outlook: Continued Uncertainty
  • Single-Borrower CMBS Default and Loss Study: Despite Pandemic Driven Default Highs, Losses Remain Low
  • CRE CLO Cash Balances Trend Upward as Market Slows
  • CMBS Loan Performance Trends: November 2022

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.