KBRA releases the March 2023 issue of CMBS Trend Watch.

March was a month of madness, not just for basketball, but for concerns surrounding the state of the economy after the collapse of three U.S. banks in one week—after which the Federal Reserve effectuated its ninth consecutive rate hike. Prior to the banking sector flare-ups, many market constituents were hopeful that securitization and origination activity would pick up—hopes that were seemingly dashed owing to market volatility. While two conduits launched, one of which priced at very wide spreads, several deals were delayed. CMBS private label issuance ended March with a year-to-date (YTD) issuance of $5.9 billion, which is down 79.5% on a year-over-year (YoY) basis.

We currently have visibility into as many as four conduits that could launch through early May, as well as one Freddie K-Series slated for April. We are also aware of two commercial real estate collateralized loan obligation (CRE CLO) deals that were geared up for launch last month, though it is not clear if one or both will be on hold for some time, as well as two single-asset single borrower (SASB) deals that could launch in April.

In March, KBRA published pre-sales for three deals ($2.9 billion) including two conduit ($1.7 billion) and one Freddie Mac K-Series ($1.2 million) transaction. March surveillance activity included a review of the ratings of 577 securities issued in connection with 54 transactions. Of the 577 ratings, 549 were affirmed, 16 were upgraded, and 12 were downgraded.

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

Click here to view the report.

Related Publications

• Lodging Loan Performance Clouded by Upper Upscale Chains
• Loan KPOs Revised to Underperform for Nine CMBS Single-Borrower Office Transactions
• Conduit CMBS Default and Loss Study: Spotlight on Five-Year Loans
• CRE Secular Trends: How Long Will Tailwinds Benefit Industrial?
• CRE Secular Trends: A Long-Term Transformation for Office?
• CMBS Loan Performance Trends: March 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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