KBRA Releases Research - CMBS Loan Performance Trends: July Update
Kroll Bond Rating Agency (KBRA) releases a report on trends observed in the July 2020 servicer reporting period. This month we observed trends related to coronavirus (COVID-19) pandemic-related borrower relief requests, special servicing transfers, and delinquencies have stabilized for now. This publication is the fourth in a series and updates our coverage of trends from March 2020 to June 2020. In this issue, we also analyzed the movement of loans in and out of the delinquency categories.
Delinquencies across KBRA's $286 billion universe of U.S. conduit, single-asset single borrower (SASB), and large loan (LL) transactions fell to 7.8% ($22.3 billion) in July, down from 8.2% ($23.5 billion) in the previous month. As a continued positive sign, loans designated as late but less than 30 days delinquent continued to decline in July. The rate fell to $6.2 billion (2.2%) compared to $9.6 billion (3.4%) in June and $17.9 billion (6.3%) in May. While these metrics point to stabilization in the delinquency rate, there is still plenty of stress and uncertainty on the commercial real estate sector as COVID-19 cases continue to rise across the U.S. at near-record daily rates, which could prolong the negative impacts on the economy and the sector.
Click here to view the report.
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. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.
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