Decline in CMBS delinquencies occurs in August

Commercial mortgage-backed securities experienced a decline in its delinquency rate.

The commercial mortgage-backed securities delinquency rate fell in August for the first time in six months, according to a report from Trepp.

Overall, the U.S. CMBS Delinquency Report from the analytics group showed that property management companies experienced the CMBS delinquency rate decline to 10.13 percent, which was a total drop of 21 basis points. This helped the figure to its most significant decline since November of last year.

"It was a great summer for CMBS investors from a performance point of view, as spreads plunged sharply from Memorial Day to Labor Day," said Manus Clancy, senior managing director of Trepp. "For the immediate future, the worst of the delinquencies should be behind us."

With this information, the special servicer had more than $72 billion from roughly 4,000 individual loans, the report explained. Much of the problem with high delinquencies was because of the level of 2007 securitized loans, as these have past maturity dates. Additionally, a significant level of loan resolutions were completed during August, which helped lower delinquency levels.

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