Delinquency on securitized commercial real estate loans has fallen to its lowest level during the decade that has passed since the financial crisis.
Delinquency of at least 30 days on loans owned by commercial-mortgage backed securities trusts concluded May at 2.15 percent.
Last month’s 30-day delinquency rate turned out to be the lowest rate for securitized CRE loans since the financial crisis in 2008.
The performance metrics were reported Tuesday by Morningstar Credit Ratings LLC based on the $770 billion in CMBS it rates.
The rate
was 9 basis points better than in the preceding month. Thirty-day CMBS delinquency has improved by 94 BPS versus the same month a year ago.
“Morningstar believes the delinquency rate will hold below 2.5 percent for the rest of the year as steady new issuance volume will continue to push the outstanding balance of CMBS loans higher and special servicers actively resolve or liquidate assets,” the ratings agency said. “Delinquencies from deals issued from 2010 through 2018 remain a small portion of the total, representing just 0.3% of the CMBS universe, while delinquent pre-crisis loans account for 1.9 percent.”
