There was a further decline in delinquencies in the commercial mortgage-backed securities sector in January
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There was a further decline in delinquencies in the commercial mortgage- backed securities sector in January.
Figures from Trepp show that 2018 began with a trend that began in summer 2017 and continued through each month of the second half of the year.
The Trepp CMBS Delinquency Rate fell six basis points to 4.83% in January.
“Though it may be a new year,” said Manus Clancy, Senior Managing Director at Trepp, “January’s delinquency rate moved in the same direction as it did in the previous six months. Fewer loans from the bubble years – mainly 2006 and 2007 – are defaulting, and those that did default are being resolved at a healthy pace. Further rate drops can be anticipated as the first half of 2018 progresses.”
While offices saw the largest decline in CMBS delinquencies (down 56 basis points to 5.84%), the lodging sector saw the largest rise with hotels delinquencies up 69 basis points to 4.51%.
The lowest rate was, once again, in the multifamily sector which fell another 28 basis points to 2.08% last month.
There was a total of almost $1.35 billion in CMBS loans that turned delinquent in January, jumping from the $800 million in December. Just $290 million cured in January.
The total of previously delinquent CMBS debt that was resolved with a loss or at par came in at $800 million.
A large swath of newly issued loans were added to the calculation and accounted for the difference.
Figures from Trepp show that 2018 began with a trend that began in summer 2017 and continued through each month of the second half of the year.
The Trepp CMBS Delinquency Rate fell six basis points to 4.83% in January.
“Though it may be a new year,” said Manus Clancy, Senior Managing Director at Trepp, “January’s delinquency rate moved in the same direction as it did in the previous six months. Fewer loans from the bubble years – mainly 2006 and 2007 – are defaulting, and those that did default are being resolved at a healthy pace. Further rate drops can be anticipated as the first half of 2018 progresses.”
While offices saw the largest decline in CMBS delinquencies (down 56 basis points to 5.84%), the lodging sector saw the largest rise with hotels delinquencies up 69 basis points to 4.51%.
The lowest rate was, once again, in the multifamily sector which fell another 28 basis points to 2.08% last month.
There was a total of almost $1.35 billion in CMBS loans that turned delinquent in January, jumping from the $800 million in December. Just $290 million cured in January.
The total of previously delinquent CMBS debt that was resolved with a loss or at par came in at $800 million.
A large swath of newly issued loans were added to the calculation and accounted for the difference.
