KBRA releases the June 2025 issue of CMBS Trend Watch.

Amid the geopolitical tensions in the Middle East and U.S. involvement, the CMBS private label market continued to demonstrate its strength, buoyed by high investor demand. The second quarter ended on an upbeat note, with 13 deals priced in June, including 12 single borrower transactions (SB), and one conduit, for a total issuance volume of $7.1 billion. On a year-over-year (YoY) comparison, year-to-date issuance through June was up 33.1%. Based on our current visibility, there could be as many as 19 deals that launch in July, including eight SB, seven conduit, three commercial real estate (CRE) collateralized loan obligations (CLO), and one Freddie Mac K-Series (Agency).

In June, KBRA published pre-sales for six deals ($3 billion), including two SB ($587 million), two conduits ($1.25 billion), one single-family rental ($778.5 million), and one small balance commercial (SC) ($392.3 million). June’s surveillance activity included rating reviews of 433 securities issued in connection with 43 transactions, including 24 conduits, 12 SB, four Agency, two CRE CLO, and one large loan. Of the 433 ratings, 387 were affirmed (89.4%), and 46 were downgraded (10.6%). In addition, 15 ratings were placed on Watch Downgrade. The report does not include 358 classes from 26 Velocity Commercial Capital (VCC) SC transactions for which details can be found here.

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

Click here to view the report.

Recent Publications

• Churn Rates in Managed CRE CLOs: Vintage Effect
• New Vintage Office Loans: Rising Credit Quality Amid Lingering Uncertainty
• 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
• New York City Leads CMBS Multifamily Issuance as Distress Jumps
• CMBS Trend Watch: May 2025
• CMBS Loan Performance Trends: June 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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