KBRA's November 2024 CMBS Trend Watch Insights
KBRA has unveiled its CMBS Trend Watch for November 2024, showcasing a significant momentum in the commercial mortgage-backed securities (CMBS) space. With new issuance maintaining a steady pace, the total issuance could approach an impressive $100 billion this year, a benchmark seen once post-global financial crisis. As of now, year-to-date figures indicate a remarkable issuance total of $95.9 billion, reflecting a staggering year-over-year increase of 172.3%.
Projected Market Activity for December
Looking ahead, KBRA anticipates that December could witness the pricing of up to 12 rated deals, which includes seven single-borrower transactions, four conduits, and one Agency deal, indicating a vibrant ongoing activity in the market.
Details on November's Pre-sales and Surveillance Activity
This month's report details KBRA's pre-sales for three significant deals totaling $2.5 billion, comprised of two conduits valued at $1.6 billion alongside one Agency totaling $875 million. Additionally, KBRA's surveillance efforts included comprehensive rating reviews of 752 securities stemming from 70 transactions. Among these, 624 ratings were affirmed, 100 experienced downgrades, while 28 were granted upgrades. One rating was placed on Watch Developing, signaling ongoing diligence within KBRA's monitoring process.
The Scope of Rating Activities
These ratings encompassed a broad range of transaction types, including 40 conduits, 12 single-family rental (SFR) transactions, eight single-borrower (SB) deals, four Agency ratings, three small-balance commercial (SC) loans, two commercial real estate collateralized loan obligations (CRE CLO), and one large loan (LL) transaction. This diverse activity underscores the active landscape of CMBS transactions in this current period.
Recent Research Highlights from KBRA
In addition to issuance insights, this month’s publication brings attention to recent KBRA research covering a variety of topical issues that are influential in shaping today’s financial markets, providing stakeholders with valuable foresight.
Accessing the Complete Report
For those seeking a comprehensive view of the CMBS landscape, it is encouraged to view the full report by following this link to KBRA's website.
About KBRA
KBRA operates as a full-service credit rating agency, holding registrations in the U.S., EU, and UK, and authorized to provide structured finance ratings in Canada. The agency’s ratings play a crucial role in helping investors meet their regulatory capital requirements across various jurisdictions, establishing KBRA as a key player in the market.
Frequently Asked Questions
What is the focus of KBRA's November CMBS Trend Watch?
KBRA's November CMBS Trend Watch highlights the ongoing momentum in new issuance, projected to surpass $100 billion by the year's end, alongside detailed surveillance activities.
How much was the total CMBS issuance year-to-date in 2024?
As of November 2024, the total CMBS issuance reached approximately $95.9 billion, which marks a significant increase of 172.3% compared to the previous year.
What are the expectations for December's CMBS market?
KBRA projects that up to 12 rated deals could price in December, indicating a continuation of the robust market activity witnessed throughout the year.
How does KBRA's surveillance process work?
KBRA carries out detailed rating reviews, reaffirming, upgrading, or downgrading ratings as necessary, based on thorough assessments of market conditions and performance metrics.
Where can I access KBRA's complete CMBS report?
The full CMBS report can be accessed directly on KBRA's official website, providing extensive insights into the commercial mortgage-backed securities market.
