Commercial loans backed by securities rose 8.14 percent in June...buy REITS as delinquencies are good!

The Associated Press July 9, 2010, 1:46PM ET

Delinquencies among U.S. commercial loans backed by securities rose 8.14 percent in June, the smallest increase in 11 months, Fitch Ratings said Friday.

But the ratings agency said the small increase from May is less a trend than a blip.

"The number of distressed properties continues to grow," said Mary MacNeill, managing director. "If borrowers are unable to access capital for leasing costs or are unable to restructure their loans to a leverage level commensurate with sustainable property values, they may stop subsidizing debt service payments."

Fitch's commercial mortgage-backed securities index tracks loans on office, retail, apartment, industrial and hotel properties with mortgage payments at least 60 days overdue.

Commercial-mortgage backed securities are pools of commercial real estate loans that are packaged and sold to investors. Loans packaged into securities only account for about one-quarter of all commercial loans outstanding.

By property type, hotels had the highest delinquency rate in June at 18.6 percent, while apartment properties had a 13.8 percent rate, Fitch said.

The delinquency rate for retail properties was 6.2 percent, while the rate for industrial properties was 5.5 percent.

The rate for office properties was 4.8 percent.

Grandpa:
WOW the smallest increase in 11 months!! This is positive? They truly believe we are dumb as a box of rocks.

When the robots rule the stock market kingdom, fundamental data is merely scoffed at while we march higher. This is not a market, it is an algorithmic video game and they will continue their upward ascent until they finally suck your "money on the sideline" into the market and then slam your face into the dirt while the HFT boys and girls short the market and ride it down until they decide they can push it up once again. Of course that day will come only after they suck you in and when you squeal like a pig and finally sell, they will cover their short, buy long and leave your sorry behind in the dust.

Do not count on any support from the SEC as their staff is preoccupied with applying for positions with Hedge Funds and HFT traders...you know, the same people that they were allegedly regulating while collecting a salary courtesy of the Main Street taxpayer. What time is the uprising meeting?