The latest September remittance data showed delinquencies of more than 60 days on CMBS have continued to climb, Barclays Capital said in a report.
Delinquencies of this type now represent 8.3% of the CMBS conduit category, up from 8.1% the previous month.
The only outlying property type trend was seen in industrial, where there was a “marginal” drop in 60-plus day delinquencies, analysts reported.
Liquidations “saw a sharp drop” during the period, having been above $1 billion for the previous two months in an increase attributed to note sale activity that slowed in the most recent period, resulting in a liquidation total of $516 million. Depending on note activity, Barclays analysts believe there could be more spikes in the future.
Even with the most recent month’s declines, on a year-to-year basis, liquidations remain strong. In 2009, liquidations for much of the year averaged $150 million per month.