KBRA releases the December 2021 issue of CMBS Trend Watch.

CMBS private label pricing volume totaled $6.5 billion for December, bringing total issuance in 2021 to $110 billion. This is more than double the 2020 issuance of $54.2 billion. We currently have visibility of up to 21 deals that could launch in January 2022, including six to eight single-borrower (SB) transactions, four conduits, two Freddie Mac K-Series, and as many as seven commercial real estate collateralized loan obligation (CRE CLO) transactions.

In December, KBRA published pre-sales for six deals ($3.9 billion) including three conduits ($2.9 billion), one SB transaction ($275 million), one single-family rental ($467.2 million), and one small balance commercial ($319.1 million). December’s surveillance activity included rating actions on 531 classes consisting of 515 affirmations and 16 downgrades. There were 281 KBRA Loans of Concern (K-LOCs) identified during the month. There were also 14 KBRA Performance Outlook (KPO) changes: one Perform to Outperform, five to Perform from Underperform, and eight to Underperform from Perform.

The spotlight feature reviews the rating transitions that occurred in 2021. The number of CMBS rating actions initiated in 2021 (4,553) exceeded that of 2020 (4,394), with affirmations (4,171) representing over 90% of 2021 activity. Upgrades edged slightly higher to 11 from eight in 2020, while downgrades (371) outpaced last year’s total of 292.

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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.

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