NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases January’s CMBS Trend Watch.
CMBS private label pricing was sluggish last month, at $1.2 billion,
which was a significant drop of 76.1% from $4.9 billion in January 2018.
However, despite a slow start to the year, 2019 CMBS volume appears to
be picking up.
With increased market stability and the Federal Reserve in patient mode,
the forward pipeline is gaining momentum. In February, we could see the
launch of 10 or more single-borrower deals as well as seven conduits and
three commercial real estate collateralized loan obligations (CRE CLOs).
In January, KBRA published pre-sales for five deals ($3.8 billion),
including one conduit ($883.5 million), one CRE CLO ($600.0 million),
one Freddie K-Series ($1.3 billion), one single borrower ($644.1
million), and one small balance commercial ($399.2 million).
Surveillance activity includes the review of 231 rated classes,
consisting of 226 affirmations, three upgrades, and two downgrades. The
activity was effectuated across 21 transactions, including 13 conduits,
five single borrowers, two Freddie K-Series, and one re-remic.
Additionally, we published three other notable releases regarding a
special servicing transfer, a CRE CLO ramp-up, and the vacancy of a
major tenant in a single borrower transaction.
In this issue’s Spotlight section, we provide a summary of a recent
release on the lodging sector, Limited-Service
Leads 2018 Problem Hotels, which was published on February 4.
The three-month rolling average IO Index increased for the third
consecutive month in January to 59.1% from 58.6% in December.
To access the report, click here.
Related Publications: (available at www.kbra.com)
CLO Trend Watch Year-End 2018
CRE CLO Eligibility Criteria
Credit Update: A Deeper Dive on REIT Private Placements
Office Market Walks the Oil Volatility Tightrope
Credit Profile Portal
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About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus, is recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.
Hinman, Associate Director
Kay, Senior Director
Thompson, Senior Managing Director