The Agencies: CMBS Only Adds to the Problem

Includes: FMCC, FNMA
by: Rubicon Associates

In the news yesterday (McClatchy):

At the end of 2009, 4.9 percent of all pools of these loans — called commercial mortgage-backed securities — were delinquent. That's a five-fold increase over the year before, Moody's Investors Service said in a mid-January special report.

The rating agency's "delinquency tracker" found that at year's end, more than 8 percent of the bonds for apartment-complex mortgages and more than 9 percent of the bonds for hotel mortgages were delinquent.

Here is something to think about: anyone who was a buyer of CMBS pre-implosion knows that the multi-family tranches of many of the CMBS transactions were purchased by the agencies (FNM and FRE).

So it is likely that this portion of their portfolio is bleeding out as well. It only gets better, doesn't it?

Disclosure: no positions