Search
 

For the First Time Ever, CMBS Delinquency Rate Cracks 10%

NEW YORK CITY-Manus Clancy, senior managing director at Trepp, tells GlobeSt.com’s Jacqueline Hlavenka that the rate is up by 67 basis points since February, a sign that the troublesome class of ’07 loans still need some schooling.

By Jacqueline Hlavenka | Updated on May 30, 2012

NEW YORK CITY-In a sign that the troublesome class of 2007 loans have not yet made the grade, the CMBS delinquency rate has hit a new high in May after steadily creeping up over the last three months. New research from Trepp shows that the delinquency rate is now 10.04%, up 24 basis points from last month (9.8%) and a whopping 67 basis points since February (9.37%), an indication that the rocky CMBS market has not yet reached solid ground.

“It is definitely not exactly as we and others have thought over the last three or five months,” Manus Clancy, senior managing director at Trepp, tells GlobeSt.com, who predicted earlier in the year that the market could easily see a spike of 70 basis points in the short-term, as five-year loans that were securitized in 2007 began to reach their maturity dates. The good news, he says, is that these loans were “heavily” front-loaded.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.