KBRA releases the August 2023 issue of CMBS Trend Watch.

At the recent Jackson Hole meeting, Federal Reserve Chairman Jerome Powell said that more interest rate hikes could be needed due to the continued strength of the economy. However, even before his hawkish statement, the commercial real estate (CRE) securitization market was already taking a pre-Labor Day break. That said, we expect robust issuance in both September and into early October. Based on our current visibility, up to 15 deals could be announced during this period including six conduits, five single-borrower (SB), three commercial real estate collateralized loan obligation (CRE CLO) deals, and one Freddie Mac K-Series deal. Year-to-date issuance totaled $24 billion, with year-over-year August issuance down 59.4%.

In August, KBRA published pre-sales for four deals ($3.5 billion) including two SB ($2 billion), one Agency ($947.8 million), and one conduit ($604.4 million). August’s surveillance activity included a ratings review of 548 securities issued in connection with 48 transactions. Of the 548 ratings, 493 were affirmed and 55 were downgraded. In addition, seven ratings were placed on Watch Downgrade.

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

Click here to view the report.

Related Publications

• CMBS Loan Performance Trends: August 2023
• Securitized Multifamily and the Housing Affordability Gap
• Maui Wildfires: KBRA-Rated CMBS and CRE CLO Exposure
• KBRA-Rated CMBS and CRE CLO WeWork Exposure
• CMBS Servicer Advance Trends: Curtailment and Recovery

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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