KBRA Releases Monthly CMBS Trend Watch

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases March’s CMBS Trend Watch.

Private-label pricing volume accelerated by 75% in March to $9.2 billion, compared to $5.3 billion in February. The increased volume brings the Q1 2018 total to $19.4 billion, a 55% increase year-over-year (YoY).

By count, single borrowers have made up the majority of deals that priced through Q1 2018. Of the 31 private-label CMBS deals that have priced year-to-date, 21 have been single borrower deals, while the remaining deals were comprised of nine conduits and one small balance commercial transaction. Based on our forward pipeline, it appears that this trend will likely continue into the second quarter as there are about a dozen single borrowers scheduled to launch over the next month or so, and only a handful of conduits that we are aware of.

In this month’s edition of Trend Watch, KBRA spotlights partial-term IO loans. With property fundamentals exhibiting signs of softening, we decided to look at how partial term IO loans could perform when their amortization periods kick in under various stress scenarios.

In March, KBRA published pre-sales for five deals ($4.8 billion), including three conduits ($2.8 billion), one CRE CLO ($610 million) and one single borrower ($1.4 billion). There were 411 surveillance actions in March, including 401 affirmations and 10 upgrades.

To view the report, please click here.

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About KBRA and KBRA Europe

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.

Contacts

Analytical:
Kroll Bond Rating Agency
Taeho Lee, 646-731-2317
Associate
tlee@kbra.com
or
Larry Kay, 646-731-2452
Senior Director
lkay@kbra.com
or
Eric Thompson, 646-731-2355
Senior Managing Director
ethompson@kbra.com

Contacts

Analytical:
Kroll Bond Rating Agency
Taeho Lee, 646-731-2317
Associate
tlee@kbra.com
or
Larry Kay, 646-731-2452
Senior Director
lkay@kbra.com
or
Eric Thompson, 646-731-2355
Senior Managing Director
ethompson@kbra.com