KBRA Releases Research – European CRE CLOs: An Emerging Asset Class

KBRA UK (KBRA) releases research on the emerging European commercial real estate collateralised loan obligation (CRE CLO) market. This latest evolution already represents a significant market in the US. KBRA rated the first widely distributed CRE CLO transaction since the global financial crisis (GFC), Starz Mortgage Securities 2021-1 DAC, which was sold to investors in October 2021 with both euro and sterling tranches.

KBRA has since received numerous enquiries from investors, banks, and lenders about the asset class, seeking information about prospects for the development of a European CRE CLO market. As more transactions emerge in Europe, the asset class will likely evolve and KBRA expects that European CRE CLOs will incorporate elements of US CRE CLOs as well as those seen in the Starz transaction.

This report offers an introduction to the asset class as developed in the US and how it compares to European commercial mortgage-backed securities (CMBS) and the KBRA-rated Starz transaction.

Click here to view the report.

Related Reports

• Starz Mortgage Securities 2021-1 DAC Pre-Sale Report
• CRE CLOs: A Primer, Today’s CRE CLOs Aren’t Yesterday’s CRE CDOs
• CRE CLO Loan Default and Loss Study
• Something Old, Something New: A Synopsis of Post-Crisis CRE CLO Structural Features

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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