In December 2022, the Trepp CMBS Delinquency Rate generated its highest percentage since July 2022.
NEW YORK, Jan. 7, 2023 /PRNewswire-PRWeb/ — Trepp, a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets has released the December 2022 CMBS Delinquency Report, revealing the rate moved up slightly again in December, rising above 3% for the first time since July 2022. Instantly access the complete report here:
The delinquency rate is a metric that tracks the total percentage of delinquent loans in CMBS. A loan is considered delinquent if it is 30/60/or 90+ days behind payment; in foreclosure; REO; or has missed its maturity date and is not paying interest. The total delinquent balance in CMBS is divided by the total outstanding balance in CMBS and converted into a percentage to determine the overall delinquency rate.
After reaching a post-COVID-19 trough of 2.92% in September 2022, the CMBS delinquency rate has inched up for three consecutive months, revealing levels above 3%.
The Trepp CMBS Delinquency Rate in December was 3.04%, an increase of five basis points from November. The percentage of loans in the 30 days delinquent bucket is 0.16% – up three basis points for the month.
“A consensus has formed in the CMBS market with many analysts and investors anticipating higher delinquency rates in 2023,” said Manus Clancy, Trepp Senior Managing Director. “The biggest impact could come from loans slated to mature in 2023,” Clancy said.
The volume of delinquent CMBS loans increased by less than 1% in December, to $18.68 billion from $18.53 billion. That is the third straight month during which volumes had increased.
For additional details, such as historical comparisons, analysis on all major property types, an overview of loans newly specially serviced, and the status of loans in grace period or beyond, download Trepp’s December 2022 CMBS Delinquency Report:
For daily CMBS and CRE commentary, follow @TreppWire on Twitter.
Trepp, founded in 1979, is the leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiencies, information transparency, and investment performance. From its offices in New York, Dallas, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is wholly owned by Daily Mail and General Trust (DMGT).
Riley Cox, Trepp Inc., 2127541010, firstname.lastname@example.org
SOURCE Trepp Inc.