US CMBS Delinquency Rate Sets a New Post-Crisis Low

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Trepp has released its January 2019 CMBS Delinquency Report which analyzes the delinquency rate and its 17th drop in the last 19 months.

CMBS Delinquency Rate by Property Type

After spread volatility made for a very choppy December, the CMBS market settled down considerably in January.

Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released its January 2019 US CMBS Delinquency Report. The full report can be found here: https://info.trepp.com/january-2019-cmbs-delinquency-report-pr.

The Trepp CMBS Delinquency Rate began 2019 in a similar fashion to the way it concluded 2018. The reading slid nine basis points to 3.02% in January. Not only does January’s number set a new post-crisis low, but it is also the 17th rate improvement in the last 19 months. Delinquencies have fallen by 181 basis points year over year.

“After spread volatility made for a very choppy December, the CMBS market settled down considerably in January,” said Trepp Senior Managing Director, Manus Clancy. “The first conduit deal of the year recently priced at impressive levels and there has been some solid spread tightening over the last month. Included in the good news is that the CMBS delinquency rate continues to fall and could dip below 3% as early as next month.”

For the second consecutive month, the industrial sector was the major property type which featured the greatest month-over-month improvement in its delinquency rate. The industrial reading dipped 34 basis points to 2.05% in January. Although it remains the worst performing major property sector, the retail rate posted the second-largest drop in January as it ended the month 29 basis points lower at 4.92%.

The percentage of CMBS 2.0+ debt marked as delinquent climbed six basis points to 0.68% in January. However, the serious delinquency rate for CMBS 2.0+ loans shed four basis points to 0.52% month over month. Delinquencies in CMBS 1.0 decreased 70 basis points to 45.28% in January. The reading for serious delinquencies in CMBS 1.0 dropped 100 basis points to 44.92% in January.

For additional details, such as historical comparisons and analysis on potential future rate moves, download the January 2019 US CMBS Delinquency Report: https://info.trepp.com/january-2019-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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