NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases July’s CMBS Trend Watch.
CMBS private label pricing volume declined to $4.0 billion in July from $7.8 billion in the prior month, bringing the year-to-date issuance total to $43.0 billion. This figure is down 12% year-over-year.
However, while many market constituents may be at the beach, we currently have visibility into a number of deals that may launch through September, including eight conduits, three Freddie Mac K-Series securitizations, and over a dozen potential single-borrower (SB) transactions. Of the SB deals, there are a handful of relatively small loans among them and it is unclear whether they will ultimately execute in an SB transaction, in a number of conduits, or even in a CMBS transaction, as the bank may not yet have won the mandate for the financing.
In addition to the CMBS activity, we are also aware of as many as a half dozen commercial real estate collateralized loan obligations (CRE CLOs) that may hit the market through the first half of September.
KBRA published pre-sales for three conduits ($2.9 billion), one single-borrower ($950 million), one single-family rental ($242 million), one CRE CLO ($525 million), two Freddie Mac K-Series ($2.6 billion), and one small balance commercial ($218 million) deal in July.
July’s surveillance activity includes a review of 302 rated classes consisting of 300 affirmations and two downgrades. The activity was effectuated across 31 transactions, including 14 conduits, eight single borrowers, five Freddie Mac K-Series, two CRE CLOs, one re-remic, and one large loan.
As part of surveillance activity in July, KBRA highlighted 90 KBRA Loans of Concern (K-LOCs), which consist of specially serviced and real estate owned (REO) assets as well as non-specially serviced loans in default or at heightened risk of default. There were also 15 KBRA Performance Outlook (KPO) changes, including seven to Underperform from Perform, five to Outperform from Perform, two to Perform from Outperform, and one to Perform from Underperform.
In our Publication Corner, we provide highlights of three research pieces that were released in July, including:
- As Freddie Mac K-Series Defeasance Accelerates, Supplemental Debt Slows
- CMBS Single-Borrower Default and Loss Study Update
- CRE CLO Trend Watch: Strong Q2 2019 Issuance as Deals Evolve and Loans Churn
To view the report, click here.
CONNECT WITH KBRA
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 designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is 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.