NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases February’s CMBS Trend Watch.
Private-label pricing volume remained relatively flat in February at $5.3 billion, compared to $4.9 billion in January. Year-to-date, volume grew to $10.1 billion, an 85.2% increase year-over-year. Although this is a notable increase, it also reflects the slowdown that occurred in Q1 2017, which followed heavy Q4 2016 volume in anticipation of the implementation of risk-retention.
CRE CLOs came out of the gate strongly in 2018 with four deals (all KBRA rated) announced through February. Based on our forward pipeline, we expect to see as many as six additional CRE CLOs announce over the next two months. We also expect up to five conduits and six single-asset single-borrower deals to announce through March.
In this month’s edition of Trend Watch, KBRA spotlights multifamily concessions, which have risen by over 170% between 2014 and 2017. Concessions varied widely by class with higher amounts reported in the class-A segment compared to class-B/C properties.
In February, KBRA published pre-sales for eight deals ($7.5 billion), including two conduits ($2.6 billion), three CRE CLOs ($1.9 billion), two single borrowers ($1.9 billion) and one Freddie K-Series transaction ($1.1 billion). There were 264 surveillance actions during the month, including 255 affirmations, seven upgrades and two downgrades.
The three-month rolling average KLTV increased for its sixth consecutive month to 99.9% in February from 97.5% in January.
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.