KBRA Releases Monthly CMBS Trend Watch

KBRA releases the May 2023 issue of CMBS Trend Watch.

We will start with the good news: CMBS private label issuance, while anemic, seems to be gaining some traction. Year-to-date (YTD) through May, $13 billion was issued versus $7.8 billion during YTD through April—an approximately 67% increase month-over-month. Furthermore, based on our current visibility, as many as 12 deals could launch in June and early July. These include up to five single-asset single borrower (SASB) deals, four conduits, two commercial real estate collateralized loan obligation (CRE CLO) deals, and one Freddie Mac K-Series. We are hopeful that last week’s signing of the debt ceiling legislation, coupled with most of the interest rate increases in the rearview mirror, will provide some calm to support additional issuance during 2H. The bad news is that year-over-year (YoY) issuance is down 72.1%, and other issues will continue to hang over the sector, such as asset price discovery and increasing defaults.

In May, KBRA published pre-sales for four deals ($2.5 billion) including one SB ($0.3 billion) and three conduit ($2.2 billion) transactions. Of the 551 ratings, 526 were affirmed, five were upgraded, and 20 were downgraded. In addition, 48 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

• Freddie Mac K-Series: First-Quarter 2023 Defeasance and Supplemental Debt Plummet After Record High in 2022
• What Debt Yield Reveals About Upcoming Office Maturities
• What Remains in Seasoned CRE CLOs?
• Data Centers in U.S. Securitization: A Primer
• CREFC High Yield, Lending & Investing Conference 2023 Recap
• Workout Fees Lurking in CMBS Waterfalls
• CMBS Loan Performance Trends: May 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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