The overall delinquency rate for loans backing commercial mortgage backed securities is expected to continue to decline in December and January on the back of large loan dispositions.
A $3 billion sale of distressed assets by CWCapital Asset Management could lower the overall percentage of delinquent loans by as much as 50 basis points over the next few months, according to Trepp. And Fitch Ratings thinks that the easset sale could drive CMBS delinquencies below 6% in December. That wuuld be the lowest rate since 2009.
Trepp reported a 32 basis point decline in the 30+ day delinquency rate for November, to 7.66%. That represents a cumulative improvement of more than 200 baisis points since the end of 2012.
Fitch reported that U.S. CMBS delinquencies fell 22 basis points in November, to 6.10% from 6.32% a month earlier. The drop was led by four large dispositions. The largest disposition was the note sale at the end of October of the original $190 million StratReal Industrial Portfolio I loan (BACM 2007-1) via a fair-value purchase option.