The delinquency rate for loans in U.S. CMBS dropped seven basis points in October to 9.29%, according to Moody's Investors Service's latest Delinquency Tracker (DQT).
Delinquencies in the U.S. have been above 9% for ten months now.
Moody's Specially Serviced Loan Tracker (SSLT) fell three basis points to 12.10%. The gap between the SSLT and the DQT widened by four basis points to 281 from 277. This is one of the smallest spreads since June 2009.
New delinquencies amounted to around $2.5 billion in October. Texas, Georgia, and California accounted for nearly half, with the six of the ten largest new delinquencies backed by office or retail properties in Texas or Georgia.
Two new CMBS deals came to market in October, adding $3.2 billion to the CMBS conduit/fusion universe. However, the addition was more than offset by the exit of $6.3 billion of seasoned loans, which has resulted in a $3.1 billion net decline in outstanding issuance, to $591.6 billion.
In the core asset classes, multifamily and hotels had the highest delinquency rates of 15.6% and 13.9%, respectively.