KBRA Releases Monthly CMBS Trend Watch

BY Business Wire | AGENCY | 02/05/24 09:56 AM EST

NEW YORK--(BUSINESS WIRE)-- KBRA releases the January 2024 issue of CMBS Trend Watch.

With spreads continuing to tighten in January, the new issuance market started off on a strong note in 2024. The positive start could carry over into February, as based on current visibility, up to 10 deals could launch including five single-borrower (SB), two conduit, two commercial real estate (CRE) collateralized loan obligation (CLO), and one Freddie Mac K-Series (Agency) deal. Despite the Federal Reserve indicating that rate cuts were not imminent at its most recent meeting, the abandonment of guidance that left hikes on the table, while expected, brings more certainty to the market. Moreover, this is a net positive for 2024 issuance volume, which is up 380.9% on a year-over-year basis from last January?s anemic levels.

In January, KBRA published pre-sales for seven deals ($6.6 billion) including four conduits ($3 billion), two SB ($2.7 billion), and one re-remic (RR) ($0.9 billion). January?s surveillance activity included a review of the ratings of 345 securities issued in connection with 38 transactions. Of the 345 ratings, 328 were affirmed, 16 were downgraded, and one was upgraded. In addition, six ratings were placed on Watch Downgrade.

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

Click here to view the report.

Related Publications

  • CREFC January Conference 2024 ? Day 3 Recap
  • CREFC January Conference 2024 ? Day 2 Recap
  • CREFC January Conference 2024 ? Day 1 Recap
  • 2023 CMBS Loan Maturities: Better by Count
  • KBRA CMBS Loss Compendium Update: December 2023
  • 5- and 10-Year Deal Credit Metrics
  • CMBS Trend Watch: December 2023
  • CMBS Loan Performance Trends: January 2024

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.