During the great financial crisis, CMBS distress took a while to play out. CMBS delinquencies and special servicing rates didn't reach their peak of 10.3% and 13.4% until mid-2012, according to Trepp.
During the current COVID-19 crisis, things have moved a lot faster. Lodging and retail suffered immediately after travel and non-essential shopping stopped in the spring.
Trepp reports that 30-plus day delinquency rates hit a near all-time high of 10.3% by June 2020. Lodging and retail delinquencies moved up to 24.3% and 18.1%, respectively; the highest on record for the CMBS industry.
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