NEW YORK CITY-The US CMBS delinquency rate for commercial real estate loans fell to 9.57% in January.
The January CMBS delinquency rate was 14 basis points below December 2012′s rate and reached the lowest level in 11 months when in February 2012 the rate stood at 9.38, according to Trepp, LLC.
Loan resolutions were slightly higher in January than a month earlier, with more than $1.2 billion in loans resolved with losses. The removal of these loans from the delinquent category helped drive the delinquency rate down 22 basis points. Loans that cured put an additional 40 basis points of downward pressure on the rate, Trepp officials stated.
There were approximately $2.8 billion of newly delinquent loans in January, putting 50 basis points of upward pressure on the rate. This total was less than the $3.2 billion of newly delinquent loans reported in December 2012.
“If the CMBS market was cycling, people would think that someone had been dumping performance enhancing drugs in the water cooler,” said Manus Clancy, senior managing director of Trepp. “New issue volume hit a five-year high in January; spreads on legacy AJ and mezzanine paper collapsed; pricing levels on new deals came in remarkably tight across the credit stack; and the delinquency rate fell once again—all very positive signs for the market.” For the full company announcement, see the Trepp news release on PR Newswire.