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EW YORK — KBRA's April 2025 CMBS Trend Watch report highlights a slowdown in private-label CMBS and CRE CLO issuance due to investor caution amid new government tariffs and economic uncertainty.

    April saw just seven deals priced, totaling $3.3 billion, down from 14 deals worth $10.3 billion in March. The sudden drop followed early-April tariff announcements that led to the temporary pause of seven expected deals valued at around $7 billion. However, many of those paused deals are now moving forward.

    Looking ahead, KBRA anticipates a stronger May with up to 13 deals potentially pricing, including single-borrower transactions, conduit deals, and CRE CLOs. Despite this optimism, the agency cautions that the forward-looking monthly number is subject to change.

    In terms of ratings, KBRA pre-sold three deals in April: a $628 million conduit deal, a $392.6 million Small Balance Commercial transaction, and a $300 million single-borrower deal. The agency also reviewed 444 ratings across 45 transactions, with 397 affirmed (89.4%), 37 downgraded (8.3%), and 10 upgraded (2.3%).

    The report also spotlights recent KBRA research publications on market issues and emerging risks affecting CRE and structured finance sectors. While economic headwinds persist, the CMBS market is showing early signs of regaining momentum. Investors and issuers will be watching May's performance closely to gauge the sector's resilience in a shifting macroeconomic landscape.

    For the full April 2025 CMBS Trend Watch report and related research, visit www.kbra.com.