KBRA releases the September 2023 issue of CMBS Trend Watch.

September year-to-date volume totaled $25.8 billion, down 59.2% year-over-year (YoY). But on a quarter-over-quarter (QoQ) basis, issuance performance continues to show improvement with YoY percentage declines for Q1-Q3 2023 trending lower. Q4 issuance could follow the trend, with up to 12 deals announcing through early November, including seven conduits, three single-borrower (SB), one single-family rental (SFR), and one Freddie Mac K-Series deal. However, it is far from a sure bet as the U.S. 10-year Treasury rate hovers at multiyear highs, loan volumes remain suppressed, and loans in the works are slow to close. This has contributed to a number of conduits slated for September and early October pushing out launch dates.

In September, KBRA published pre-sales for five deals ($3.7 billion) including two conduits ($1.6 billion), one Agency ($1.1 billion), one SB ($700 million), and one CRE CLO ($364 million). September’s surveillance activity included a review of the ratings of 791 securities issued in connection with 83 transactions. Of the 791 ratings, 760 were affirmed, 24 were downgraded, and seven were upgraded.

This month’s edition also highlights recent KBRA research publications, which cover various topical issues.

Click here to view the report.

Related Publications

• Building Vintage Driving Office Distress; Municipal Response Varies

• CMBS Loan Performance Trends: September 2023
• Metro-Level CRE Loan Distress: Location Still Matters
• KBRA-Rated CMBS, Freddie Mac, CRE CLO, and SFR Exposure to Hurricane Idalia

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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