KBRA releases the July 2024 issue of CMBS Trend Watch.

U.S. private label CMBS issuance continued at a steady pace in July, bringing the year-to-date (YTD) total to $55.6 billion, which represents a 182.7% year-over-year (YoY) increase. With the Federal Reserve hinting that a rate cut could be on the table in September, coupled with the 10-Year Treasury falling below 4% for the first time since early February, the anticipation of lower rates could help support deal flow. Based on current visibility, up to nine deals could launch before Labor Day, including up to five single-asset single borrower (SASB) and four conduits.

In July, KBRA published pre-sales for seven deals ($7.7 billion) including three single borrower (SB) ($4 billion), two conduits ($1.7 billion), one commercial real estate collateralized loan obligation (CRE CLO) ($1.1 billion), and one Agency ($906 million). July’s surveillance activity included rating reviews of 457 securities issued in connection with 36 transactions. Of the 457 ratings, 389 were affirmed, 62 were downgraded, and six were upgraded. In addition, seven ratings were placed on Watch Downgrade. The activity was effectuated across 36 transactions including 24 conduits, six SBs, four Agencies, and two CRE CLO deals.

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

Click here to view the report.

Related Publications

• KBRA CMBS Loss Compendium Update: June 2024
• Manufactured Home Communities—Affordable Housing Alternative, but Limited Supply
• CREFC 2024: Are We At An Inflection Point?
• Appraisal Values of Distressed Loans Highlight CMBS Stress
• KBRA CMBS Rating Transitions: 13 Years In
• CMBS Loan Performance Trends: July 2024
• CMBS Trend Watch: June 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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