KBRA releases the October 2023 issue of CMBS Trend Watch.

The Federal Reserve kept interest rates unchanged at its November 1 meeting, marking the second consecutive Federal Open Market Committee (FOMC) meeting with rates held steady after 11 consecutive increases. While this could bring some calm to the highly volatile interest rate environment we have been in, it remains to be seen how this will influence new issuance volume. Based on current visibility, up to 10 deals could be announced in November and early December, including five conduits, four single-borrower (SB), and one Freddie Mac K-Series deal. While issuance volume has been showing some signs of improvement on a year-over-year basis, it is still down 55.9% year-to-date through October, at $29.4 billion.

In October, KBRA published pre-sales for four deals ($3.7 billion) including two conduits ($1.5 billion) and two Agency ($2.2 billion). October’s surveillance activity included a review of the ratings of 476 securities issued in connection with 40 transactions. Of the 476 ratings, 458 were affirmed, 14 were downgraded, and four were upgraded. In addition, four ratings were placed on Watch Developing.

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

Click here to view the report.

Related Publications

• CRE CLO Refinance: Challenges Ahead for 2021-22 Vintage Loans
• Building Vintage Driving Office Distress; Municipal Response Varies

• CMBS Loan Performance Trends: October 2023
• CMBS Trend Watch: September 2023

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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