KBRA Releases Monthly CMBS Trend Watch

Kroll Bond Rating Agency (KBRA) releases the November 2021 issue of CMBS Trend Watch.

CMBS private label pricing volume totaled $13 billion for November, bringing the year-to-date (YTD) total to $100.7 billion, more than double the YTD issuance in 2020 ($49.1 billion). We currently have visibility of up to 14 deals that could launch in December, including five to seven single-borrower (SB) transactions, three conduits, one Freddie Mac K-Series, and as many as three commercial real estate collateralized loan obligation (CRE CLO) transactions.

In November, KBRA published pre-sales for 11 deals ($10.9 billion) including four conduits ($4.1 billion), three SB transactions ($3.6 billion), two single-family rental ($1.4 billion), one Freddie Mac K-Series ($1.3 billion), and one CRE CLO ($450 million). November’s surveillance activity included rating actions on 591 classes consisting of 553 affirmations, 33 downgrades, and five upgrades. There were 283 KBRA Loans of Concern (K-LOCs) identified during the month. There were also 16 KBRA Performance Outlook (KPO) changes: four to Perform from Underperform, and 12 to Underperform from Perform.

The spotlight feature studied the impact of foreclosure type on loan resolution time and loss severity. Generally, depending on the state where the commercial property is located, a foreclosure may be either judicial or nonjudicial. We found that on average, resolution times were longer and loss severity was higher in the judicial foreclosure states. However, there were greater variations from state to state, with some nonjudicial states experiencing longer resolutions and higher severities than judicial states.

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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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