CMBS delinquency inches down in July
The CMBS delinquency rate dropped 3 basis points to 5.42 percent in July, after a brief rise in June, according to Trepp. It is now 62 basis points lower than a year ago and 33 basis point lower year-to-date. During the past 27 months, the delinquency rate has fallen 23 times.
“Despite the recent softening in new issue CMBS prices, the pipeline remains strong, with issuance 25 percent ahead of last year’s pace,” said Joe McBride, a research associate with Trepp, in a statement.
There were $1.4 billion of newly delinquent loans in July, while $800 million in previously delinquent loans were paid off at par or with a loss, and approximately $600 million in loans cured. The percentage of seriously delinquent loans dropped 10 basis points to 5.22 percent. There are currently $28.5 billion in delinquent loans.
The industrial delinquency rate had the greatest rise — after the most significant drop in June — increasing 29 basis points to 7.41 percent. The mul