US CMBS Delinquency Rate Drops in November

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Trepp has released its November 2018 CMBS Delinquency Report which notes that the rate has resumed its downward trajectory.

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As we enter the holiday season, CMBS issuers and investors have had plenty to be joyous about this year.

Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released its November 2018 US CMBS Delinquency Report. The full report can be found here: https://info.trepp.com/november-2018-cmbs-delinquency-report-pr.

The Trepp CMBS Delinquency Rate fell nine basis points to 3.33% in November. The rate has now decreased in 15 of the 17 months from July 2017 to November 2018. The delinquency reading has moved 156 basis points lower since the beginning of the year. November’s rate represents a new post-financial crisis low.

“As we enter the holiday season, CMBS issuers and investors have had plenty to be joyous about this year,” said Trepp Senior Managing Director, Manus Clancy. “Even with the end of the Wall of Maturities and recent credit volatility, lending and issuing has moved at a faster clip than initially anticipated. Additionally, CMBS delinquencies continue to recede as they have for the better part of 2018.”

The lodging sector has taken over as the best performing major property type. Lodging delinquencies moved five basis points lower to 1.93% in November. The multifamily sector is now the second-best performing property type as its reading jumped 16 basis points to 2.04% last month. November’s largest improvement was observed in the office sector as its rate slid 10 points to 3.83%.

Delinquencies for CMBS debt in the 2.0+ vintages inched two basis points higher to 0.64% last month. The CMBS 1.0 delinquency reading climbed nine basis points to 46.45%. Industrial loan delinquencies in CMBS 1.0 surged 272 basis points higher to 51.58% in November, the largest month-over-month move for a major property type in either group. Delinquencies for multifamily loans in CMBS 2.0+ rose 19 basis points to 1.26%.

For additional details, such as historical comparisons and analysis on potential future rate moves, download the November 2018 US CMBS Delinquency Report: https://info.trepp.com/november-2018-cmbs-delinquency-report-pr. 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. From its offices in New York, San Francisco, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance and portfolio management. Trepp is wholly-owned by 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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