Trepp Reports CMBS Rise to Record Levels in February

Trepp LLC, a provider of commercial mortgage-backed securities (CMBS) and commercial mortgage information, analytics and technology to the global securities and investment management industry, has released today its February 2011 U.S. Delinquency Report that finds the delinquency rate rose again in February with the percentage of loans 30-plus days delinquent, in foreclosure or real estate-owned (REO) climbing five basis points to 9.39 percent, the highest in history for U.S. commercial real estate loans in CMBS. This increase, however, is one of the smallest month-over-month increases since the beginning of the credit crisis over two years ago. The value of delinquent loans now exceeds $61.8 billion.  The Industrial, Office and Retail Sectors boosted the overall delinquency rate in February by 32, 22 and nine basis points respectively. The Multifamily sector improved by 24 basis points and the Lodging Sector improved by 47 basis points. These remained the two worst performing sectors however with delinquency rates of 16.6 percent and 14.61 percent respectively. “The faith that investors have shown in the legacy U.S. CMBS market over the last few months was validated in February as the overall delinquency rate had one of its smallest increases in nearly two years,” said Manus Clancy, managing director of Trepp LLC. “While we expect the delinquency rate to continue to climb slightly higher, this may be the first real sign that the peak is near.” For more information, visit www.trepp.com.