Kroll Bond Rating Agency (KBRA) releases the March 2021 issue of CMBS Trend Watch.
CMBS private label pricing volume ended the month of March at $6.6 billion, bringing the year-to-date (YTD) issuance total to $15.2 billion. On a year-over-year (YoY) basis, volume is off 29.4% from 2020. We currently have visibility of up to 16 deals that may launch this April, including four conduits, four to six single-borrower (SB) transactions, one Freddie Mac K-Series, and four to five commercial real estate collateralized loan obligation (CRE CLO) transactions.
In March, KBRA published pre-sales for six deals ($5.7 billion) including two conduits ($1.8 billion), one Freddie Mac K-Series ($1.3 billion), and three CRE CLOs ($2.6 billion). March’s surveillance activity included rating actions on 439 classes consisting of 385 affirmations, three upgrades and 51 downgrades effectuated across 35 transactions. There were 349 KBRA Loans of Concern (K-LOCs) identified during the month. There were also 62 KBRA Performance Outlook (KPO) changes, including 59 to Underperform from Perform and three to Perform from Outperform.
In the Credit Metrics corner, we highlighted that March’s three-month rolling average KBRA loan-to-value (KLTV) increased to 100.3% versus 99.1% in February. This is the highest level since May 2017. In the report, we also include a summary of recent publications. This month, KBRA released a report, “ARAs on Autopilot”, which includes an analysis of ARAs and Automatic ARAs that were effectuated from 2014 through February 2021.
Click here to view the report.
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.
Giselle Vuong, Associate
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Larry Kay, Senior Director
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Eric Thompson, Senior Managing Director
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Michele Patterson, Managing Director
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