KBRA Releases Monthly CMBS Trend Watch

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

This month’s Spotlight features a review of Freddie Mac K-Series defeasance, which reached a new high in 2021, while supplemental debt originations hit a multiyear low. After a pause in 2020, borrowers once again gravitated toward defeasance in 2021, which jumped 67% to its highest level ($12.1 billion) over the last 13 years, while supplemental debt fell 28% to $1.2 billion.

CMBS private label pricing volume totaled $11.5 billion in February 2022, bringing the year-to-date (YTD) issuance total to $19.3 billion. On a year-over-year (YoY) basis, volume is up 123% from 2021. We currently have visibility of up to 18 deals that could launch in March 2022, including six to eight single-borrower (SB) transactions, four conduits, one Freddie Mac K-Series, and as many as five commercial real estate collateralized loan obligation (CRE CLO) transactions.

In February, KBRA published pre-sales for six deals ($6 billion) including three conduits ($3.4 billion), one Freddie Mac K-Series ($1.2 billion), one CRE CLO ($1.1 billion) and one small balance commercial ($278.6 million). February’s surveillance activity included rating actions on 452 classes consisting of 440 affirmations, 10 downgrades, and two upgrades. There were also 17 KBRA Performance Outlook (KPO) changes: two to Outperform from Perform, six to Perform from Underperform, and nine 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.