CMBS Delinquency Rate at Post-Recession Low

Phil Hall

May 31, 2018

For the first time in five months, Trepp LLC’s commercial mortgage-backed securities (CMBS) delinquency rate increased–albeit by only basis point

The delinquency rate for commercial mortgage-backed securities (CMBS) hit a post-recession low this month, according to new data released by Trepp.

The overall delinquency rate for commercial real estate loans in CMBS is currently 4.12 percent, a decrease of 24 basis points from last month’s 4.36 percent level and a 135 basis points decline from 5.47 percent level set one year ago. This month’s delinquency rate goes beyond the previous post-crisis low of 4.15 percent from February 2016.

Among the different sectors within commercial real estate, the multifamily delinquency rate inched up one basis point to 2.27 percent; Trepp identified apartment loans as the best performing major property type for May. The industrial delinquency rate increased 16 basis points to 4.69 percent while the lodging delinquency rate dropped six basis points to 2.92 percent and the office delinquency rate plummeted by 55 basis points to 5.02 percent. The retail delinquency reading took a 25-basis-point dive to 5.72 percent.

Link copied

Published

May 31, 2018

Regulation and Compliance

Fitch Places Fannie, Freddie On Negative Ratings Watch

Ties credit rating to outcome of U.S. debt limit negotiations.

As negotiations over raising the federal debt ceiling drag on, the lack of a deal is starting to have side effects. Late Thursday, Fitch Ratings announced it had placed Fannie Mae’s and Freddie Mac’s debt ratings on Ratings Watch Negative (RWN). The announcement followed Fi...

Operations

JPMorgan Chase To Cut 1,000 Jobs At First Republic Bank

Acquired the bank earlier this month after it was seized by federal regulators.

Less than a month after acquiring failed First Republic Bank, JPMorgan Chase & Co. plans to reduce the bank’s staff by 15%, or about 1,000 workers. According to published reports, the nation’s largest bank by assets on Thursday offered full-time or temporary roles to ne...