DBRS Morningstar Releases Commentary on 2020 CMBS Repeat Loans

DBRS, Inc. (DBRS Morningstar) released a commentary entitled “2020 CMBS Repeat Loans,” which examines repeat loan data for the commercial mortgage-backed security (CMBS) industry and found that refinancing a previous CMBS loan has historically driven approximately 20% of CMBS originations. DBRS Morningstar also identified characteristics and trends of repeat loans, which can provide insight into the way repeat loans fuel originations for CMBS lenders and ultimately affect the overall credit quality of issued transactions.

The volume of repeat loans has decreased in recent years with the percentage of repeat loans dropping to 17.7% in 2019 and 13.9%—down by 21.4% year over year—in H1 2020. Although overall CMBS repeat financing has been declining in the past several years, the volume of CMBS loans refinanced into commercial real estate/collateralized loan obligation (CRE/CLO) transactions has been strong since 2019. As of H1 2020, over two billion CMBS loans have exited through CRE/CLO.

Notes:
The commentary is available at www.dbrsmorningstar.com.

For more information on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

DBRS, Inc.
22 West Washington Street
Chicago, IL 60602 USA
Tel. +1 312 696-6293