NEW YORK CITY—Halloween proved to be a treat for the CMBS market this year, as the last day of October saw delinquencies for securitized commercial mortgages drop for the fourth month in a row. The three-basis point drop brought the late-pay rate down to 3.5%, as new issuance volume of $8 billion more than doubled portfolio runoff, Fitch Ratings said Friday.
In fact, delinquencies for so-called CMBS 1.0 transactions—those issued prior to the market for CMBS collapsing amid the Global Financial Crisis—have increased in each of the past 21 months, according to Fitch. The delinquency rate for these pre-2009 legacy transactions now exceeds 43%.
However, Fitch-rated CMBS 1.0 deals occupy an increasingly small quadrant of the overall CMBS universe. Currently, there are $27 billion of Fitch-rated 1.0 transactions, compared to $334 billion of 2.0 CMBS deals rated by Fitch.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 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.
Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
