CMBS Late-Pays Rise for Third Month

Trepp headquarters in New York City; the firm reports mixed sector-level results for delinquencies.

NEW YORK CITY—CMBS delinquencies continue to trend in the wrong direction, although from a historical perspective they’re a fraction of what they were at the high point of late-pays among securitized loans. Trepp LLC said Thursday that the delinquency rate had ticked upward by 12 basis points to 4.35% as May ended, marking the third consecutive month of upward movement.

The 12-bp increase was the biggest in the past three months. March saw late-pays creep up by seven bps, while April’s rise was limited to a single point. However, the delinquency rate remains 105 bps below the year-ago level, as well as 599 bps lower than the all-time high of 10.34% reached in July 2012.