Wednesday, February 2, 2011

CMBS Delinquency Rate - Another Record High

In January, the delinquency rate for U.S. commercial real estate loans in CMBS jumped to 9.34% according to Trepp. That is the highest percentage of loans 30+ days delinquent, in foreclosure or REO in the history of the CMBS market.

The percentage of loans seriously delinquent (60+ days delinquent, in foreclosure, REO or non-performing balloons) is now 8.59%, an increase of 26 basis points.

Barclays reported that by vintage, the most substantial delinquency increase was recorded for 2001 and 2000 vintages (140bps and 60bps, respectively), as more loans are maturing and turn delinquent. The later vintages, 2006 and 2007, also posted gains in the 60 days category at 30bps and 50bps, respectively.

In line with Barclays' expectations, liquidations increased during the first month of the year. The firm said high loss severity liquidations spiked 16% to $1.3 billion between December and January. Low-loss severity liquidations totaled $238.4 million and zero –loss liquidations totaled $353.6 million.

"Thus, the overall liquidations posted a very high level at $1.9 billion," Barclays said.