The overall 30+ day CMBS DQ rate has fallen about 50 bps year to date to 9.07%, according to Trepp figures and this trend is likely to continue in 2013.
Securitization market analysts say that improving fundamentals and a majority of maturing loans coming from the non-peak 2003 vintages are factors that will support declining rates this year.
Fitch Ratings said in a report today that delinquencies for U.S. CMBS 2.0 remain virtually nonexistent – delinquencies in these transactions, issued post-2009, stood at just 0.03%.
CMBS late-pays declined seven basis points in May to 7.37% from 7.44% a month earlier.
“The tighter post-recession credit environment coupled with still-low interest rates is helping to keep newer CMBS delinquencies hovering near zero,” explained Fitch analysts.
On the other hand, for the peak vintage years of 2006 to 2008 delinquency rates still remain elevated at 11.60%, compared with 6.75% for transactions issued in 2005 and prior.
Analysts at Standard & Poor’s said in a report this weekend that the overall CMBS delinquency rate could fall another 50 basis points in H2.