CMBS delinquency rate falls in September

The commercial mortgage-backed securities delinquency rate recently declined.

The level of delinquencies for commercial mortgage-backed securities declined during September, according to a report from Trepp.

CMBS delinquencies fell to 9.99 percent during September, which was the first time the figure was less than 10 percent since  the beginning of the second quarter. However, it was a slightly lower decline than the drop of 21 basis points in August, the report noted. That decline was the most significant since last year. Close to $1.8 billion delinquent loans were resolved during September, which was $1.5 billion more than in August.

"The CMBS market is on its firmest footing in four years," said Manus Clancy, senior managing director of Trepp. "Just this month, spreads fell precipitously, predictions for new CMBS issuance levels rose, and now delinquency levels have contracted. This is great news for the industry."

Newly delinquent CMBS loans totaled approximately $3.3 billion this month, which was the same as August's figure, the report added. However, the levels of new delinquencies could be less in the next year, as fewer are scheduled to mature next year.

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