KBRA Releases Monthly CMBS Trend Watch

NEW YORK--(BUSINESS WIRE)--KBRA releases the January 2022 issue of CMBS Trend Watch.

This month’s Spotlight reviews CMBS 2.0 defeasance which snapped back strongly in 2021 after falling by nearly 50% in 2020. Defeasance volume totaled $9.1 billion in full-year 2021, of which 45% closed in the last quarter. Conduit loan defeasance ($8.1 billion) represented much of the increase and was at its highest level in five years.

CMBS private label pricing volume totaled $6.9 billion for January, which was up 45.2% year-over-year (YoY). We currently have visibility of up to 17 deals that could launch in February 2022, including six to eight single-borrower (SB) transactions, three conduits, one Freddie Mac K-Series, and as many as five commercial real estate collateralized loan obligation (CRE CLO) transactions.

In January, KBRA published pre-sales for four deals ($5.2 billion) including two conduits ($2.7 billion), and two Freddie Mac K-Series ($2.5 billion). January’s surveillance activity included rating actions on 287 classes consisting of 253 affirmations and 34 downgrades. A total of 243 KBRA Loans of Concern (K-LOCs) were identified during the month’s surveillance reviews. There were also 18 KBRA Performance Outlook (KPO) changes: two to Outperform from Perform, two to Perform from Underperform, and 14 to Underperform from Perform.

Click here to view the report.

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.