KBRA releases the August 2025 issue of CMBS Trend Watch.

With the Federal Reserve signaling that a possible rate cut could be coming at its mid-September meeting, lower borrowing costs could set the stage for increased CMBS private label issuance. Already through August, issuance is up 23.9% on a year-to-date (YTD) year-over-year (YoY) comparison. Single borrower (SB) deals continue to lead the charge (12 of 14 deals in August) which, based on our current visibility, could continue into September as up to 10 SB, six conduit, three commercial real estate (CRE) collateralized loan obligations (CLO), and one Freddie Mac K-Series (Agency) deal could launch in the month.

In August, KBRA published pre-sales for three deals ($1.5 billion), including two SB ($1.1 billion) and one single-family rental (SFR) ($456.1 million). August’s surveillance activity included rating reviews of 908 securities issued in connection with 102 transactions, including 41 SFR deals, 32 conduits, 17 SBs, five Agency, four CRE CLOs, two large loans (LL), and one Re-REMIC (RR). Of the 908 ratings, 820 were affirmed (90.3%), 85 were downgraded (9.4%), and three were upgraded (0.3%).

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

Click here to view the report.

Recent Publications

• CMBS Servicer Advances: Curtailments Accelerate
• Conduit CMBS Default and Loss Study Update: 2.0 Begins to Make Its Mark
• Conduit Subordination: Follow the Credit Metrics
• KBRA CMBS Loss Compendium Update: June 2025
• 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
• CMBS Trend Watch: July 2025
• CMBS Loan Performance Trends: August 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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