US CMBS Delinquency Rate Barely Budges in April

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Trepp released its April 2016 CMBS Delinquency Report today, highlighting the second straight monthly increase for the rate.

CMBS Delinquency Rate - April 2016

Although the rate inched higher for the second straight month, the CMBS market enjoyed another sustained period of...increased demand.

Trepp, LLC, the leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its April 2016 US CMBS Delinquency Report (http://info.trepp.com/thank-you-april-2016-cmbs-delinquency-report) today.

The Trepp CMBS Delinquency Rate inched up one basis point in April, which is the second straight month that the rate has crept higher. The delinquency rate for US commercial real estate loans in CMBS is now 4.23%, 134 basis points lower than the year-ago level and 94 points lower since the beginning of the year.

In April, CMBS loans that were previously delinquent but paid off with a loss or at par totaled almost $450 million. Over $600 million in loans were cured last month, and about $1.1 billion in CMBS loans became newly delinquent.

“The CMBS delinquency rate has regressed to smaller month-over-month changes following two months of huge improvements to begin 2016,” said Joe McBride, Research Associate at Trepp. “Although the rate inched higher for the second straight month, the CMBS market enjoyed another sustained period of tightening spreads and increased demand in the face of meager new issuance.”

The percentage of seriously delinquent loans, defined as 60+ days delinquent, in foreclosure, REO, or non-performing balloons, increased along with the overall delinquency rate. The rate of seriously delinquent loans inched up seven basis points to 4.13% in April. If defeased loans were removed from Trepp’s delinquency calculation, the 30-day delinquency rate would be 4.45%.

By property type, delinquencies for all but two of the five major sectors increased in April. Retail loans posted the largest month-over-month rate improvement, dipping 13 basis points lower to 5.20%. Industrial loans remain the worst performing property type, as the delinquency rate for the sector increased four basis points to 5.95%.

For additional details, such as delinquency status and historical comparisons, download the April 2016 US CMBS Delinquency Report (http://info.trepp.com/thank-you-april-2016-cmbs-delinquency-report). For daily CMBS commentary, follow @TreppWire on Twitter.

About Trepp
Trepp, LLC, founded in 1979, is the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets. Trepp provides primary and secondary market participants with the web-based tools and insight they need to increase their operational efficiencies, information transparency and investment performance. Trepp serves its clients with products and services to support trading, research, risk management, surveillance and portfolio management. Trepp is wholly-owned by dmgi, a division of the Daily Mail and General Trust (DMGT).

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Joe McBride
Trepp
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