KBRA Releases Monthly CMBS Trend Watch

KBRA releases the July 2023 issue of CMBS Trend Watch.

With optimism growing that there could be a soft landing for the U.S. economy, the commercial real estate (CRE) securitization market seems to be holding steady to improving. Three conduits announced in July (with two being priced), in line with the pace of three transactions each in May and June. While the market may take a breather in the second half of August, based on our current visibility there could be at least 16 deals that could announce through September. These include five conduits, six single-borrower (SB) deals, two commercial real estate collateralized loan obligations (CRE CLO), and three Freddie Mac K-Series deals. Year-to-date issuance is more sobering, with year-over-year (YoY) July issuance down by 62.7%. Additionally, the single-family rental (SFR) market could experience a modest revival with a couple of transactions announcing during that period.

In July, KBRA published pre-sales for five deals ($4 billion) including three conduit ($2.5 billion) and two CRE CLO ($1.5 billion) transactions. July’s surveillance activity included a ratings review of 414 securities issued in connection with 34 transactions. Of the 414 ratings, 390 were affirmed, 22 were downgraded, and two were upgraded. In addition, one rating was 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

• CMBS Servicer Advance Trends: Curtailment and Recovery
• U.S. CRE NPL Securitizations: Poised for a Comeback?
• CMBS Loan Performance Trends: July 2023
• KBRA CMBS Loss Compendium Update: June 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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