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Morningstar Sees October Decline in CMBS Delinquencies
In contrast to Trepp’s report earlier this month, Morningstar Credit has reported a decline in the CMBS delinquency rate for October, dropping 40 basis points from September to 8.4%. Morningstar’s calculated delinquency rate includes loans in the conduit, large loan & SASB universes which are reported as delinquent or have the payment status “performing matured balloon” or “non-performing matured balloon.”
Office posted the largest decline in CMBS delinquencies at 90 bps. However, the office delinquency rate remains highest among property types at 12.9%, followed by retail at 8.6%. Hotel and multifamily loans posted 20-bp increases in delinquencies during October.
The specially serviced CMBS rate slightly increased to 10.8% in October from 10.5% in September. The rate for hotel loans rose by 60 bps, followed by office, which saw a 30-bp increase. Conversely, the
rate for retail loans decreased by 60 bps month over month, Morningstar reported.
- ◦Financing
