The delinquency rate for legacy CMBS transactions rose in May after having posted its low reading in the previous month, according to Credit Suisse.
The bank’s 60+ day delinquency rate, across its legacy conduit universe, rose 10bp in May -- one of the largest increases since June 2012 and only the second double-digit increase (other than March’s) in that period.
The rise follows last month’s unexpectedly large drop of 24 bp.
“The delinquency rate has been up and down, rising in four out of the past ten months,” explained analysts in a Credit Suisse securitization research report today.
The overall rate now stands at 10.36% (as a percentage of the current balance), according to Credit Suisse, down almost 30 bp from last July’s all-time high rate of 10.65%.
Credit Suisse said that going forward the delinquency rate for legacy conduit deals in 2013 will likely continue fall, “supported by the high pace of loan liquidation, modifications moderate and the influx of new credit problems remain positive but continues to slow.”