Although the effects of the tariffs remain uncertain, the recent April 2 announcement roiled capital markets in a manner not seen since the pandemic. The disruption prompted several transactions that KBRA was in the process of rating—totaling approximately $17.5 billion—to be placed on hold. These deals joined a growing number of transactions that were forced to reprice amid widening spreads.
Issuers have generally indicated a willingness to move forward if capital markets stabilize. However, persistent volatility could stifle the robust issuance volume anticipated in our 2025 Outlooks1 . While it remains premature to revise our issuance forecasts, it is increasingly likely that issuance for the remainder of the year could be dampened if current conditions persist.
Structured finance is not merely a segment of capital markets—it supports approximately $15.6 trillion in financing across the U.S. economy. This includes 73% of all residential mortgages,…