A credit rating and analysis firm has issued a report saying that commercial mortgage-backed securities are falling into delinquency at a high rate, fueled in large part by the COVID-19 pandemic.
According to a report from New York-based financial services firm Fitch Ratings, U.S. commercial mortgage-backed securities, or CMBS, delinquency rates rose for the fourth consecutive month in July, reaching its highest point since April 2014. The report said that in July, the loan delinquency rate rose by 139 basis points, from 3.59% in June, ending the month at 4.89%.
The report said the high rate is being driven by a surge of new delinquencies totaling $8.4 billion, which outpaces $1.7 billion in resolutions.
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Max Mitchell
Max Mitchell is ALM's Regional Managing Editor for The Legal Intelligencer, New Jersey Law Journal, Delaware Business Court Insider and Delaware Law Weekly. Follow him on Twitter @MMitchellTLI. His email is [email protected].
