CMBS delinquency rate lowest in four years.

Position:Commercial
 
FREE EXCERPT

Delinquency rates for U.S. real estate loans in commercial mortgage-backed securities (CMBS) continued to fall in March, reaching four-year lows, reported Trepp LLC, New York.

Manus Clancy, senior managing director at Trepp, said CMBS delinquencies fell 24 basis points during the month to 6.54 percent.

"The CMBS market had the pleasure of singing the same happy refrain in March as delinquencies continued to fall," Clancy said. The delinquency rate has fallen for 10 consecutive months.

March's delinquency rate represents the lowest percentage since January 2010, Clancy said. "We had anticipated a large drop in the rate due to the CW-Capital assets, but that descent has been extended, as the notes didn't really begin to make it through remittance cycles until the new year," he said. Clancy predicted that the rate will stabilize somewhat in coming months. The current delinquency rate is 288 basis points lower than a year ago.

New delinquencies totaled $1.7 billion in March, up from $1.3 billion in February, Trepp reported. But the total number of delinquent loans fell month-over-month.

All five major property types saw an improving delinquency rate in March. Retail dipped just 6 basis points but remains the best-performing property type. Multifamily saw a 13-basis-point improvement, but retains the worst performance record among the sectors; it has the only double-digit delinquency rate.

The percentage of...

To continue reading

FREE SIGN UP