NEW YORK CITY-Even as the future for newly issued CMBS looksbright, the fallout from legacy securities continuespiling up. Trepp says the CMBS delinquency rate is now the highestever, while Real Capital Analytics reports that CMBS loans haveaccounted for a majority of newly distressed situations thus farthis year.

“To date in 2010, loans serving as collateral for CMBS issueshave accounted for 72% of the newly distressed situations, sharplyup from 40% in 2009 and 23% in 2008,” according to RCA in itsmonthly “US Capital Trends” report. While pointing out that it’stoo soon to tell whether the worst is opver for banks, “it doesappear that CMBS loans are likely to be more problematic thannon-CMBS loans going forward.”

RCA notes that lenders have stepped up the pace of workouts inthe past several weeks. As of the end of February, lenders hadresolved $14.7 billion in distressed situations, while new distresswas $13.7 billion for the first two months of the year. That theresolution of distress was greater than new inflows was “asignificant milestone,” RCA says, but the tally makes “just a smalldent” in the $157 billion of troubled situations.