KBRA Releases Monthly CMBS Trend Watch
4 Sep 2024 | New York
KBRA releases the August 2024 issue of CMBS Trend Watch.
With the Federal Reserve signaling its intent to cut its key interest rate, additional commercial real estate (CRE) financing is expected as borrowing costs eventually decline. Although the timing and volume of this increase remain uncertain, it will likely contribute to the ongoing rebound in the CMBS private label market. As of year-to-date (YTD) through August 30, 2024, the market has surged 165.4% year-over-year (YoY). Looking ahead, up to 20 deals could launch by early October, including 10 single-borrower (SB) deals, six conduits, three commercial real estate collateralized loan obligations (CRE CLO), and one Freddie Mac (Agency) deal.
In August, KBRA published pre-sales for six deals ($4.1 billion) including four conduits ($3.3 billion), one SB ($620 million), and one re-remic (RR) ($206 million). August’s surveillance activity included rating reviews of 964 securities issued in connection with 104 transactions. Of the 964 ratings, 780 were affirmed, 138 were downgraded, and 46 were upgraded. The activity was effectuated across 104 transactions including 41 single-family rental (SFR) deals, 33 conduits, 18 SBs, six Agency transactions, four CRE CLOs, one large loan, and one RR deal.
This month’s edition also highlights recent KBRA research publications that cover various topical issues.
Click here to view the report.