CMBS Late-Pays Mark 5th Monthly Decline

Fitch Ratings headquarters in Lower Manhattan.

NEW YORK CITY—In what Trepp LLC is calling a “five-peat,” CMBS delinquencies edged downward in November for the fifth consecutive month, according to data from Trepp and Fitch Ratings. It marks the second-longest period of declines in late-pays in more than eight years, exceeded only by a 14-month streak in 2013 and 2014.

Trepp is reporting a decline of three basis points from October to 5.18%, while for Fitch-rated CMBS deals the improvement is somewhat greater: a 13-bp drop to 3.37%. Fitch attributes the monthly decline in delinquencies to continued strong new issuance volume and increased resolution activity, with November seeing $5.6 billion of new Fitch-rated CMBS transactions. Meanwhile, resolutions of $843 million exceeded new delinquencies of $479 million, says Fitch.