CMBS Deliquency

The delinquency rate in September improved for the third consecutive month, easing eight basis points to 2.9 percent.

by monthly balance; $ in billions

1217_CMBS
Source: Morningstar Credit Ratings, LLC

The delinquency rate in September improved for the third consecutive month, easing eight basis points to 2.9 percent, as the delinquent unpaid balance dropped nearly 1 percent, while the balance of the universe of securitized commercial mortgages rose to a seven-month high of $770.4 billion. The CMBS delinquent unpaid balance sunk to a 16-month low of $22.65 billion, down $211 million from the prior month, and down $446 million, or $1.9 percent, from the year-earlier period. While legacy CMBS now accounts for less than 7 percent of the CMBS universe, delinquencies from deals issued before 2010 represent 91.6 percent of all delinquencies by balance.

Steve Jellinek is vice president of CMBS Research at Morningstar Credit Ratings.