KBRA releases the November 2023 issue of CMBS Trend Watch.

Four conduits priced in November—a milestone event. No more than three had priced in any single month for 20 consecutive months, dating back to February 2022. Furthermore, up to six deals could be announced in December, including three single-borrower (SB), two conduits, and one Freddie Mac K-Series deal. Should that occur, it will be a strong finish to a rather dismal issuance year, as year-over-year (YoY) volume is down 49.3%.

We are hopeful the market’s growing conviction that the Federal Reserve will cut interest rates in 1H 2024 is a harbinger of a better year. Regardless, January could represent a strong start, as there may be up to five conduits, five SBs, and one Freddie Mac K-Series that could launch during the month.

In November, KBRA published pre-sales for five deals ($4.1 billion) including four conduits ($2.9 billion) and one Agency ($1.2 billion). November’s surveillance activity included a review of the ratings of 733 securities issued in connection with 65 transactions. Of the 733 ratings, 679 were affirmed, 37 were downgraded, and 17 were upgraded.

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

Click here to view the report.

Related Publications

• 2024 CMBS Sector Outlook: Cloudy, With a Glimmer of Hope

• PACE Overview and Market Evolution
• Canadian CMBS Loan Default and Loss Study
• CMBS Loan Performance Trends: November 2023
• CMBS Trend Watch: October 2023

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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