KBRA Releases Monthly CMBS Trend Watch

KBRA releases the May 2025 issue of CMBS Trend Watch.

Demand for U.S. CMBS private label issuance accelerated in May after tariff uncertainty and its potential economic impact rattled the markets in April. While tariff concerns remain, issuers ramped up their activity as market volatility slowed amid tightening spreads, with 13 deals ($9.2 billion) pricing in May, including four conduit and nine single borrower (SB) transactions. This compares to the seven deals ($3.3 billion) that priced in April and 14 deals ($10.3 billion) in March. On a year-over-year (YoY) basis, year-to-date issuance through May increased 39.1%. In addition, based on our current visibility, the momentum is expected to carry over into June with up to 14 deals pricing, including seven SB, five conduits, and two commercial real estate (CRE) collateralized loan obligations (CLO).

In May, KBRA published pre-sales for seven deals ($6.8 billion) including three SB ($4.1 billion), three conduits ($1.96 billion), and one CRE CLO ($778.9 million). May’s surveillance activity included rating reviews of 715 securities issued in connection with 58 transactions, including 39 conduits, 11 SB, six Agency, one re-REMIC, and one CRE CLO. Of the 715 ratings, 655 were affirmed (91.6%), 53 were downgraded (7.4%), and seven were upgraded (1%). In addition, 51 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

• Data Centers: A Comparison of ABS and CMBS Structures
• 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: April 2025
• CMBS Loan Performance Trends: May 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.

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