The delinquency rate for commercial mortgage-backed securitiesshot up faster than ever as the COVID-19 pandemicgripped global life. But it could have been worse, according toTrepp's latest CMBS delinquency rate report.
With stay-home orders putting many businesses in a drawn-outstandstill, the rate for May hit 7.15%, up from April's 2.29%,according to Trepp.
The May rate could have been worse, nearer to 10%, because ofthe high number of borrowers in April who missed their payments.Instead, many of those loans remained in the categories of being ina "grace" or "beyond grace" period, while others reverted to"current" rather than moving into the "delinquent" category—loansthat are 30 days or more past due.
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Thomas Phillips
Thomas Phillips is part of the social media team at ALM Media.
