KBRA Releases Monthly CMBS Trend Watch

KBRA releases the February 2023 issue of CMBS Trend Watch.

U.S. CMBS private label issuance ended February with a year-to-date (YTD) issuance of $3.5 billion, which is down 83% on a year-over-year (YoY) basis. With the economy sending mixed signals and inflation still persistent, there is a growing concern that the Federal Reserve’s work is not yet done. Some economists are even calling for a 50-basis point (bp) rate increase at the Federal Open Market Committee’s (FOMC) upcoming March meeting. However, amid all this uncertainty, we may see up to three conduits, two commercial real estate collateralized loan obligation (CRE CLO) deals, and possibly two single-asset single-borrower (SASB) programs that could launch in March.

In February, KBRA published pre-sales for three deals ($1.8 billion) including two conduit ($1.5 billion) and one single-family rental ($343 million) transaction. February surveillance activity included a review of the ratings of 549 securities issued in connection with 54 transactions. Of the 549 ratings, 526 were affirmed, 16 were upgraded, four were downgraded, and three were maintained on Watch Downgrade.

This edition of Trend Watch also highlights four reports that were released as part of KBRA’s new series on the secular trends that are shaping the “new normal” landscape across various CRE property types.

Click here to view the report.

Related Publications

• CRE Secular Trends: A Long-Term Transformation for Office?
• CRE Secular Trends: Self-Storage Continues to Lock It Up
• CRE Secular Trends: The Multifamily Affordability Squeeze
• CRE Secular Trends: Shoppers Return to Stores as E-Commerce Growth Slows
• CMBS Loan Performance Trends: February 2023
• CMBS Trend Watch: January 2023

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.

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