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CMBS delinquencies hit record high: Trepp

September 07, 2010 12:45PM

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(source: Trepp)

After two months of improvement, the delinquency rate in the U.S. commercial mortgage-backed securities market shot up 21 basis points in August to the highest level in the history of the CMBS industry, dating back to the early 1990s, according to Trepp’s latest monthly delinquency report (see the full report below). The overall CMBS delinquency rate in August was 8.92 percent nationwide, which includes loans that are 30 or more days delinquent, in foreclosure or bank-owned. Meanwhile, seriously delinquent loans — those that are at least 60 days delinquent — also saw a 20-basis-point spike. The overall acceleration in souring loans follows lesser increases of 12 basis points in July and 17 basis points in June, which had sparked hopes about the possibility of a recovery. But the August data signals that, in fact, the worst may not yet be over for commercial real estate, Trepp said. Hotels fared worst of all property types during the month, up 51 basis points to an 18.92 percent delinquency rate. Meanwhile, retail was the only segment of the real estate market to improve, with its delinquency rate declining 14 basis points to 6.76 percent. TRD

Treppwire September 2010