Tag Archives: CMBS

The delinquency rate for commercial mortgage-backed securities (CMBS) moved up 12 basis points in June to 10.16 percent, reaching an all-time high, according to a report from Trepp. The delinquency rate includes loans 30 days delinquent or in foreclosure. In May, the rate surpassed 10 percent at 10.04 percent. A year ago, the delinquency rate was 9.37 percent and prior to breaking through the 10 percent barrier, the delinquency rate was 9.80 percent in April. Trepp cited weak performance among lodging, office and retail loans as reasons for the rise in the delinquency rate.

Just two months after matching its lowest reading in a year, the Trepp CMBS Delinquency Rate reversed course and is now close to matching the highest reading of all time. At 9.80 percent, the April 2012 rate for 30-day plus delinquencies is just 8 basis points shy of the July 2011 record when it was 9.88 percent, according to Trepp, a provider of information, analytics and technology to the CMBS, commercial real estate, and banking markets. April's rate jumped 12 basis points from March after already increasing 31 basis points from the month before in February.

The commercial real estate (CRE) sector faces $362 billion in maturing debt this year, according to the latest estimates from Trepp LLC. For the five-year period of 2012 to 2016, the company's research team estimates $1.73 trillion of CRE maturities, with the largest one-year sum of $371.1 billion dropping in 2013. They also reported that nearly two-thirds of the maturities through 2016 are underwater or close to sinking underwater, which could reduce borrowers' chances for extending the loan term upon reaching the balloon date.

Increasing struggles for office properties, most notably in Atlanta, overshadowed what was otherwise a flat February for delinquencies among loans held in commercial mortgage-backed securities (CMBS), according to the latest index results from Fitch Ratings. By the agency's assessment, CMBS late-pays fell two basis points last month to 8.30 percent. The decline was led by a large hotel loan - Innkeepers - that was brought current. Fitch's delinquency index includes 2,536 loans totaling $32.6 billion.

The delinquency rate on loans included in commercial mortgage-backed securities (CMBS) transactions increased by five basis points in December to 9.32 percent, according to Moody's Investors Service. At the same time, the rate of loans in special servicing declined by 13 basis points. December was the 12th consecutive month that CMBS delinquencies have been above 9 percent, by Moody's assessment. Bank of America Plaza in Atlanta, Georgia, with an outstanding balance of $363 million, was the largest newly delinquent loan in December.

The delinquency rate among commercial mortgage backed securities (CMBS) rose in eight of 12 months in 2011, according to a report released Wednesday by Trepp. Most recently, the rate rose seven basis points to 9.58 percent for the month of December. That's up from 9.2 percent one year ago. Trepp views this as the first of a six to twelve month stretch where the rate could increase by 75 basis points in aggregate, as loans originated in 2007 begin reaching their balloon dates.

November marked the fourth straight month that Fitch Ratings has recorded a decline in the delinquency rate for loans held in U.S. commercial-backed mortgage securities (CMBS). CMBS late-pays fell by 15 basis points to 8.41 percent, as new delinquencies totaling $1.8 billion were offset by $2.2 billion of resolutions. Behind the positive numbers, though, Fitch says the performance of CMBS collateralized by office properties remain an area of concern, with more than half of all new delinquencies stemming from office loans.

The delinquency rate for loans held in U.S. commercial mortgage-backed securities (CMBS) fell 26 basis points to 9.51 percent in November, according to Trepp, LLC. That's the second biggest decline recorded by the firm this year, surpassed only by August's 36 point drop. The rate has now fallen in four of the 11 months of 2011. Recent declines, however, likely aren't the makings of a trend, Trepp says. The company is expecting increases in coming months as 2007 vintage loans start to reach their five-year balloon maturity dates.

September marked the 20th consecutive month that distressed sales made up more than 20 percent of commercial property sales, according to Moody's/REAL Commercial Property Price Index. The index reported distressed transactions for the month accounted for 25.9 percent of all commercial transactions. While distressed sales were in keeping with recent trends, commercial property prices broke a four-month streak of increases with a 1.4 percent decline in September, according to Moody's.

Recording a slight decrease in delinquencies in its preliminary third quarter estimate, Trepp predicts full market recovery will not occur for years. Residential mortgage delinquencies fell 0.3 percent in the third quarter to 12 percent, according to Trepp's preliminary data. This is down 1.1 percent from last year. The research firm says the slow rate of improvement reflects the high volume of foreclosures and weak price trends that still plague the nation's housing markets.