US CMBS Delinquency Rate Inches Lower in November

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Trepp released its November 2017 CMBS Delinquency Report today, which contains information on the reading’s fifth consecutive monthly decrease.

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CMBS delinquencies continue to fall as troubled legacy loans meet resolution. Let’s hope it’s more of the same in 2018.

Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, released its November 2017 US CMBS Delinquency Report today. The full report can be found here: http://info.trepp.com/november-2017-cmbs-delinquency-report-press-release.

The Trepp CMBS Delinquency Rate dropped again in November, as the reading has fallen in each of the last five months. The delinquency rate for US commercial real estate loans in CMBS is now 5.18%, a decrease of three basis points from the October level. The rate’s current five-month streak of improvement is the second-longest measured in the last eight years.

“As we approach the end of 2017,” said Manus Clancy, Senior Managing Director at Trepp, “most CMBS pros would have to concede that the year beat expectations by almost any measure: steady interest rates and low volatility helped drive issuance up; risk retention deals were very well received; and the Wall of Maturities was a non-story. On top of that, CMBS delinquencies continue to fall as troubled legacy loans meet resolution. Let’s hope it’s more of the same in 2018.”

Roughly $1.1 billion in loans turned newly delinquent in November. Those new delinquencies put 27 basis points of upward pressure on the rate. However, more than $300 million in loans were cured last month, and about $900 million in previously delinquent CMBS notes were resolved with a loss or at par. These actions reduced the November delinquency reading by eight and 22 basis points, respectively.

Delinquency rates for three of the five major property sectors decreased in November. The largest drop of the month was the office reading, which slid 42 basis points to 6.50%. The multifamily delinquency rate fell 27 basis points to 2.71% last month, as the apartment segment remains the best performing major property type in CMBS.

For additional details, such as delinquency status and historical comparisons, download the November 2017 US CMBS Delinquency Report: http://info.trepp.com/november-2017-cmbs-delinquency-report-press-release. For daily CMBS commentary, follow @TreppWire on Twitter.

About Trepp
Trepp, LLC, founded in 1979, is a leading provider of data, analytics, and technology solutions to the global securities and investment management industries. Trepp specifically serves three key sectors: structured finance, commercial real estate, and banking to help market participants meet their objectives for surveillance, credit risk management, and investment performance. Trusted by the industry for the accuracy of its proprietary data, Trepp provides clients sophisticated, comprehensive models and analytics. Trepp is wholly owned by dmg Information, the business information division of Daily Mail and General Trust (DMGT). For more information, visit http://www.Trepp.com.

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Sean Barrie
Trepp
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