Source: Trepp / #Housing #Economy
NEW YORK, NY - Trepp LLC, the leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its January 2014 US CMBS Delinquency Report.
January marks the eighth straight month of improvement in the Trepp delinquency rate for US commercial real estate loans in CMBS. The rate fell by 18 basis points over the course of January to 7.25%. This level compares to 9.57% from one year ago. The last time the rate rose was May of 2013, when the rate increased by only four basis points.
There are currently $38.9 billion in delinquent loans, and $47.7 billion in loans with the special servicer. During January, $1.3 billion in previously delinquent loans were resolved with losses, while $163 million were resolved without losses. In addition, almost $1 billion in loans cured during the month. However, new delinquencies totaled about $1.8 billion. These new delinquencies are slightly greater than December's newly delinquent loans.
"The CMBS market managed to stay warm compared to the brutally cold month experienced by the Midwest and Northeast," said Manus Clancy, Senior Managing Director of Trepp. "The CMBS delinquency rate continued its improvement and CMBS spreads, particularly new issue BBB bonds, narrowed nicely. Not a bad way to kick off 2014."
Trepp believes there is more room for improvement for the delinquency rate in the near-term. A rate below 7% could be attainable by early spring as loan resolutions remain very high.
For additional details, such as an analysis by major property type, delinquency status, and historical comparisons, request the January 2014 US CMBS Delinquency Report at www.trepp.com/knowledge/research