The 30+ delinquency rate on CMBS shot up in July to a record 9.88%, according to a report by Trepp. This comes after two consecutive declines in the delinquency rate in May and June.
Part of the increase, however, can be ascribed to a change in the way some special servicers report data.
Still, the figure is likely to spook the industry, as it hits the market that has grown anxious over the last couple of months. Spreads blew out in June and July, spurring some observers to cut their expectations of CMBS funding for the second half of the year, Trepp said.
New issuance has also been shaken by Standard & Poor’s decision last week to stop rating new conduit/fusion CMBS deals. So far, the move has led two big CMBS deals to be pulled from the market.
Below is a breakdown of the delinquency rate by property type.
Also attached is the PDF of the report.