KBRA Releases Monthly CMBS Trend Watch

KBRA releases the September 2024 issue of CMBS Trend Watch.

There is a renewed sense of optimism in the commercial real estate (CRE) industry. With the Federal Reserve lowering its key interest rate and signaling more rate cuts to come, confidence is building that lower borrowing costs will lead to an increase in transaction activity and prices. This could add to the CRE issuance momentum already experienced this year, which on a year-to-date (YTD) September year-over-year (YoY) basis has increased 176.5%. Based on our current visibility, the momentum is expected to carry into October as up to 15 deals could launch in the month including six single-borrower (SB) deals, six conduits, two commercial real estate collateralized loan obligations (CRE CLO), and one Freddie Mac (Agency) deal.

In September, KBRA published pre-sales for nine deals ($7.3 billion) including four conduits ($3.6 billion), four SBs ($2.9 billion), and one Agency ($843.2 million). September’s surveillance activity included rating reviews of 463 securities issued in connection with 39 transactions. Of the 463 ratings, 382 were affirmed, 70 were downgraded, and 11 were upgraded. In addition, seven ratings were placed on Watch Developing. The activity was effectuated across 39 transactions including 23 conduits, six CRE CLOs, five Agency transactions, three SBs, one large loan, and one small balance commercial deal.

Click here to view the report.

Related Publications

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• KBRA CMBS Loss Compendium Update: June 2024
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• CMBS Loan Performance Trends: September 2024
• CMBS Trend Watch: August 2024

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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