Pari Passu Loans in CMBS 2.0

DBRS, Inc. (DBRS) updated its Pari Passu Index for loans in transactions issued after 2010. A portfolio of these loans has been created and shared on DBRS Viewpoint (http://viewpoint.dbrs.com/#!/explore?p=1412), a CMBS interactive platform that will instantly allow users to see their exposure to pari passu loans. The volume of pari passu loans has increased significantly in the last two years. There are about 880 pari passu pieces with total issuance balance of $44.7 billion in 2016 and year-to-date 2017, which is greater than the total number for the prior years with 660 pieces and $44.2 billion between 2011 and 2015. In 2016, there was an unusually large amount of pari passu notes contributed to commercial mortgage-backed security (CMBS) transactions with over $23 billion (29% of total issuance) of loans and close to 500 pieces. The trend for 2017 is similar: As at the end of October, 33% of the total issuance for the year thus far was contributed by pari passu loans with $20 billion and more than 380 pieces.