Standard & Poor’s expects the credit quality of new issue commercial mortgage bonds to deteriorate in 2014 as the result of increased competition among lenders.

Commercial mortgage backed securities performed have performed well this year. The delinquency rate fell to 8.56% in the third quarter from 9.77% a year earlier and the amount of loans behind on payments fell slightly as well, to $35 billion from $42 billion at the beginning of the year. (The total amount delinquent peaked at just over $49 billion in late 2010.)

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