Trepp analyzes Q1 2023 bank CRE loan performance, findings reveal higher delinquency rates, increased risk concerns, and slower origination volume.
NEW YORK, July 27, 2023 /PRNewswire-PRWeb/ -- Trepp, a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate (CRE), and banking markets, has released the Q1 2023 Bank CRE Loan Performance report, using analysis from Trepp's Anonymized Loan-Level Repository (T-ALLR) data set. Instantly access the report here: https://www.trepp.com/instantly-access-q1-2023-tallr-report
The report reveals a notable increase in bank CRE loan delinquency rates and a significant decline in origination volumes during Q1 2023. Lender concern about risk has risen across multiple regions, particularly for the multifamily and office sectors.
Delinquency rates for bank-held CRE loans surged in all property types except for the industrial sector. The overall delinquency rate experienced a sharp rise, surging from 0.80% in the previous quarter to 1.03%, signifying a substantial increase compared to Q4 2022.
"Q1 2023 saw the lowest origination volume in the past couple decades, a direct impact of higher interest rates and lack of deal flow," said Matt Anderson, Managing Director at Trepp. "In the T-ALLR report, we see criticized loan rates for multifamily and office have risen across the board. People are mainly concerned about the office sector, but it is interesting that multifamily risk has risen as well."
The analysis is mainly built on the examination of trends in Trepp's Anonymized Loan-Level Repository (T-ALLR) data set. The T-ALLR data is comprised of bank balance sheet loan data, a diverse set of loans totaling about $160 billion sourced from multiple banks.
For more information, and to see the complete report including data on delinquent and noncurrent loans, distress rates by property type, criticized loans by region, and commercial mortgage origination volume, click here: https://www.trepp.com/instantly-access-q1-2023-tallr-report
Contact Trepp at [email protected] or 212.754.1010 and visit http://www.trepp.com for more information.
About T-ALLR
The Trepp Anonymized Loan Level Repository (T-ALLR) provides banks with loan-level anonymized and summary data for CCAR, DFAST, and other PD, LGD, and benchmarking model development. The T-ALLR Data Feed is derived from data that is contributed by participant banks.
About Trepp
Trepp, founded in 1979, is the leading provider of data, insights, and technology solutions to structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiencies, information transparency, and investment performance. From its offices in New York, Dallas, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management.
Media Contact
Riley Cox, Trepp Inc., 2127541010, [email protected]
SOURCE Trepp Inc.
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