CDOs, MBSs, CMBS, CMOs

Moody's: U.S. CMBS Loan Delinquencies Slip to 9.18%

Posted on Thursday, June 30, 2011

The delinquency rate on loans included in commercial mortgage-backed securities (CMBS) transactions fell four basis points in May to 9.18 percent, according to Moody’s Investors Service’s Delinquency Tracker (DQT), which tracks all loans in U.S. conduit and fusion deals with a current balance greater than zero.
The dollar balance of delinquent loans in commercial mortgage bonds remained at approximately $56 billion last month.
“We expect a high single-digit or low double-digit delinquency rate to persist over the near term,” said Tad Philipp, director of CRE research at Moody’s.
The volume of specially serviced loans remained about 3.5 percent greater than the volume of delinquent loans in
May, which suggests persistence in the delinquency rate, according to Moody’s.
Moody’s Specially Serviced Loan Tracker slipped 10 basis points last month to 12.62 percent.
While loans totaling $3.4 billion became newly delinquent in May, previously delinquent loans totaling approximately $4.1 billion became current, worked out, or were disposed.
The total number of delinquent loans decreased to 4,017 in May, down from 4,047 in April.
Moody’s also revealed that the top 25 metropolitan statistical areas (MSAs) continued to outperform the broader market with a delinquency rate of 8.48 percent, 70 basis points below the national average.
The industrial delinquency rate increased the most of all property types in May, expanding by 93 basis points to 11.16 percent.
Multifamily was the second greatest increase, rising 41 basis points to 15.76 percent.
The retail sector, which fell 31 basis points to 7.31 percent, showed the greatest decline.
The office sector delinquency rate moved least, declining two basis points to 6.87 percent.
The delinquency rate for hotels also declined, slipping three basis points to 16.35 percent.
By: Heather Hill Cernoch DS NEWS


By Carrie Bay DS NEWS


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