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Wednesday, February 2, 2011

CMBS Delinquency Rate Sets New All Time Record of 9.34%

Trepp Reports Another Record High
CMBS Delinquency Rate of 9.34%
for January Despite New
Issuance and Falling Spreads

NEW YORK--(BUSINESS WIRE)--Trepp, LLC, the leading provider of CMBS and commercial mortgage information, analytics and technology to the global securities and investment management industry, released today its January 2011 Delinquency Report (full report available at http://www.trepp.com).

The U.S. CMBS delinquency rate rose again in January with the percentage of loans 30 or more days delinquent, in foreclosure or REO climbing 14 basis points to 9.34%, the highest in history for U.S. commercial real estate loans in CMBS. The value of delinquent loans now exceeds $61.4 billion.

The Glass 1/2 Full Perspective
“While the rate continues to head higher, optimists can point to the fact that the rate of increase is significantly smaller than it was in the prior two months,” said Manus Clancy, Managing Director of Trepp, LLC. “Pessimists can counter that the jump comes despite the fact that new issues continue to make their way into the calculation and servicers continue to resolve troubled loans.”

Additional CMBS Delinquency Data from
Barclays Capital via Housing Wire
The multifamily sector was up 120 bps to a 15.8% delinquency rate, according to Barclays Capital. Industrial delinquencies increased the most month-over-month yet still remained below multifamily, up to 8.9% from 6.3%. In the lodging sector, 17% of CMBS are delinquent, Barclays said.

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