KBRA Releases Monthly CMBS Trend Watch

KBRA releases the April 2025 issue of CMBS Trend Watch.

U.S. CMBS private label and commercial real estate (CRE) collateralized loan obligation (CLO) issuance slowed in April as government tariffs and economic uncertainty moved issuers and investors to the sidelines. When news on tariffs hit at the start of the month, seven deals (approximately $7 billion) that KBRA was expecting to rate in April were subsequently paused. Since then, most of these transactions appear to be moving forward again. Across the entire market, seven deals ($3.3 billion) were priced in April compared to 14 ($10.3 billion) in March. However, year-over-year (YoY) issuance, based on a strong first quarter, was higher by 68.4%. The pace of issuance is picking back up again, and, based on our current visibility, up to 13 deals could price in May, including five single borrower (SB), five conduits, two CRE CLOs, and one Freddie Mac K-Series (Agency). However, in the current environment, the forward-looking monthly number is a moving target and could quickly change.

In April, KBRA published pre-sales for three deals including one conduit ($628 million), one Small Balance Commercial (SC, $392.6 million), and one SB ($300 million). April’s surveillance activity included rating reviews of 444 securities issued in connection with 45 transactions, including 23 conduits, 12 SB, eight Agencies, one re-remic, and one SC. Of the 444 ratings, 397 were affirmed (89.4%), 37 were downgraded (8.3%), and 10 were upgraded (2.3%). In addition, eight ratings were placed on Watch Downgrade.

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

Click here to view the report.

Recent Publications

• 2025 CMBS Sector Outlook: Twin Peaks?
• KBRA Global Rating Stability and Transition Study: 2011-2024
• Assessing the Ripple Effect: Tariff Uncertainty Clouds Structured Finance Outlook
• From Origination to Stabilization: Can CRE CLOs Bridge the Gap?
• New York City Leads CMBS Multifamily Issuance as Distress Jumps
• KBRA Examines CMBS GSA Risk Amid Government Cuts
• 2024 CMBS Loan Maturities: Payoff Rates Decrease
• KBRA CMBS Loss Compendium Update: December 2024
• CMBS Trend Watch: March 2025
• CMBS Loan Performance Trends: April 2025

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1009279

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