KBRA releases the September 2022 issue of CMBS Trend Watch.

U.S. CMBS private label came in at $4.3 billion in September, down from $6.2 billion in August. This brings the year-to-date total to $63.3 billion, a decline of 8.2% year-over-year. High inflation, rising interest rates, and geopolitical tensions will continue to weigh on markets as we enter the fourth quarter, influencing both issuance levels and spreads. However, October may be more productive as there could be up to 15 deals poised to launch in the month including as many as four to five commercial real estate collateralized loan obligation (CRE CLO) transactions, five single-borrower (SB) transactions, three conduits, and two Freddie Mac K-Series.

In September, KBRA published pre-sales for three deals ($2.5 billion) including one Freddie Mac K-Series ($1.3 billion), one conduit ($726.7 million), and one single-family rental (SFR) transaction ($426.8 million). September’s surveillance activity included rating actions on 872 classes consisting of 764 affirmations, 84 upgrades, 17 downgrades, five Watch Downgrades, and two Watch Upgrades. The activity was effectuated across 89 transactions including 38 SFRs, 29 conduits, seven SB transactions, seven CRE CLOs, five Freddie Mac K-Series, one re-remic transaction, one large loan, and one small-balance commercial transaction.

The month’s edition also highlights our recent CMBS research publications, which included SFR Securitizations: A Decade in the Making, CMBS Loan Performance Trends: September 2022, and CMBS LTV Covenant Breach Risk on the Rise.

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.

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