Kroll Bond Rating Agency Releases Monthly Newsletter: CMBS Trend Watch

NEW YORK--()--Kroll Bond Rating Agency (KBRA) released its CMBS monthly newsletter, CMBS Trend Watch. In our first issue of the new year, we take a look back at how credit metrics have evolved during 2013. An analysis of the data indicates that origination standards loosened over the course of the year. In-Trust KLTVs ended 2013 on a higher note, and the volume of high leverage loans with KLTVs in excess of 100% was also on the rise as the year drew to a close. Meanwhile, the proportion of pools represented by partial term interest only (IO) loans reached post crisis highs, reducing amortization, and Q4 2013 KDSCs were markedly lower than the prior three quarters. Given the non-homogenous nature of CMBS, key metrics will continue to vary loan to loan and deal to deal, but as we enter 2014 we expect that increased volume and competition among originators will uniformly influence underwriting standards.

The newsletter, CMBS Trend Watch, as well as the KBRA Credit Metrics spreadsheet can be found at www.krollbondratings.com. The metrics are available in spreadsheet form, and include a “Comp Calculator” feature that allows users to dynamically compare credit metrics across our rated conduit universe.

About Kroll Bond Rating Agency

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Kroll Bond Rating Agency
Terri Magnani, 646-731-2415
tmagnani@kbra.com
or
Nicoletta Kotsianas, 646-731-2308
nkotsianas@kbra.com

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Contacts

Kroll Bond Rating Agency
Terri Magnani, 646-731-2415
tmagnani@kbra.com
or
Nicoletta Kotsianas, 646-731-2308
nkotsianas@kbra.com