NEW YORK, NY - Trepp, LLC, the leading provider of information, analytics and technology to the CMBS, commercial real estate, and banking markets, released its November 2013 US CMBS Delinquency Report.
The Trepp CMBS delinquency rate continued to fall in November, with a decrease of 32 basis points. The delinquency rate is now 7.66%, making November the sixth consecutive month of improvement. The Trepp delinquency rate has fallen 268 basis points since reaching an all-time high of 10.34% in the summer of 2012.
"Despite the gains November posted with respect to delinquencies, the market was quiet, too quiet," said Manus Clancy, Senior Managing Director at Trepp. "Light trading volume and minimal spread moves defined the market. For anyone who profits off of volatility, it was a disappointing month."
Contributing to the improvement in delinquencies in November were about $2.2 billion in loans that cured and $1.2 billion in previously delinquent loans that were resolved with losses. New delinquencies totaled just over $2 billion in November, which compares to $1.6 billion in October.
As Trepp noted last month, there could be more meaningful gains for the delinquency rate in 2013. Still to come is the sale of more than $3 billion of distressed assets and additional note sales by special servicer CWCapital. Preliminary bids for the assets were due in mid-November, so Trepp expects that some of these will close in time to hit the December remittance cycle. Removing these non-performing assets from the delinquent loan category would result in a 50-basis-point decrease in the delinquency rate, so it's possible the rate could dip below the 7% mark before long.
For additional details, such as historical delinquency rates, delinquency status, and delinquency rates by major property type, request the November 2013 US CMBS Delinquency Report at Trepp.com.
Source: Trepp / #RealEstate #Economy