NEW YORK CITY—The delinquency rate for US CMBS is now 6.44%, having dropped 10 basis points in April, despite a seeming slowdown loan resolutions, Trepp reports.

The trajectory in general is clearly a positive one: Trepp notes that April's rate is 259 basis points lower than it was 12 months ago and 390 basis points lower than the summer of 2012.

A surge in loan resolutions, namely the CWCapital distressed asset sales, has been one driver in the delinquency rate's improvement for the early part of the year. There were more than $4.5 billion in loans resolved in February and March, accounting for an almost 90-basis-point drop in the rate.

Then in April, the trend reversed, with the amount of loan resolutions dropping dramatically to $850 million.

Still, the loans that did resolve put 16 basis points of downward pressure on the delinquency rate. Loans that cured totaled about $770 million in April, resulting in 15 basis points taken off the delinquent loan percentage.

However delinquencies totaled about $1.2 billion in April, pushing the rate up by 23 basis points and bringing the total number of delinquent loans to $34.1 billion. To date, about 2,500 loans are with the special servicer, with a combined loan balance of just over $41 billion.

"There were more winning days than losing ones for CMBS investors," says Manus Clancy, Senior Managing Director at Trepp, in a prepared statement. Even when US stocks sold off, CMBS spreads held firm, he noted.

"Month-over-month, spreads were modestly tighter across the board and new issue pricing came in near its tightest levels of 2014 with CMBS 3.0 BBBs leading the pack. With US delinquencies continuing to move lower, there was a lot to cheer about for CMBS in April."

On a sector basis, office performed the worst in April. It was the only major property type that did not improve for the month, with the office delinquency rate increasing nine basis points to 6.82%.

Trepp also reported that:

• The multifamily delinquency rate dropped 39 basis points to 9.83%. It is still the worst performing asset class despite office's reversal.

• The industrial delinquency rate fell 13 basis points to 8.69%.

• The lodging delinquency rate dropped 14 basis points to 6.32%.

• The retail delinquency rate dropped six basis points to 5.65%. It remains the best performing major property type.

Instant Insights /

Loan Resolutions Drive Down CMBS Delinquency Rate

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