The delinquency rate for U.S. commercial mortgage-backed securities (CMBS) rose to 9.65% in April from 9.42% in March – the largest jump since December 2010 and the highest rate on record, Trepp LLC reports. The value of delinquent loans now exceeds $62.8 billion.
The 23 basis-point (bp) increase was above the 12-month rolling average of 18.5 bps per month.
‘With the delinquency rate showing very small increases in February and March, and CMBS lending beginning to pick up, most of us thought that the worst was behind the CMBS market,’ says Manus Clancy, Trepp's managing director of Trepp. ‘But instead, the month indicated that the ride to recovery won't be without some bumps along the way.’
The gains in the delinquency rate comes despite the addition of new (and generally current) issues being added to the calculation and a greater number of CMBS loans being resolved by special servicers, Trepp adds.
Except for hotels, all property types saw increased delinquencies. Multifamily remains the worst performer, with a 16.77% delinquency rate.
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