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CMBS Late-Pays Post Biggest Jump in Nearly Three Years
Trepp’s CMBS Delinquency Rate saw its biggest jump in nearly three years in April. The April reading is 2.29%, a jump of 22 basis points over the March number, although hotel loans saw a 118-bp increase.
The last time the overall delinquency rate posted a bigger increase was in June 2017. At that point, the industry was still talking about the “wave of maturing” 2007 loans.
“While an increase in the delinquency rate was probably expected by most industry watchers, the magnitude of the move likely surprised many by its modest size,” said Trepp’s Manus Clancy. He added that “it is necessary to throw out the old way of looking at the data.”
Most CMBS borrowers impacted by COVID-19 won’t appear as “delinquent” until the May payment cycle. That’s because most borrowers made their March 1 payments, a timeframe that occurred before the COVID-19 headlines and shelter-at-home orders became widespread.
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- ◦Financing
