CMBS Delinquency Rate Tops 7%, Led by Hotels at 13%

by: Research Recap

The delinquency rate on loans included in US Commercial Mortgage Backed Securities (CMBS) increased 60 basis points in April to 7.02%, according to Moody’s Investors Service’s Delinquency Tracker ((DQT)).

The April increase was the second biggest jump in the history of the DQT, only nine basis points short of the record 69 basis point increase in March.

April saw a net increase of nearly $3.7 billion to the balance of delinquent loans, says Moody’s. During the month, 415 loans totaling $5.9 billion moved into delinquency, while 230 loans became current or worked out, reducing the delinquent balance by about $2.3 billio

By property type, the hotel sector regained the dubious distinction of having the highest delinquency rate, rising 171 basis points to 12.98%.

The March leader, multifamily, rose 68 basis points during April to 12.87%.US CMBS Delqu

The office sector continued to have the lowest delinquency rate, after a 46 basis point rise during the month to 4.58%.

The industrial sector saw delinquencies increase by 67 basis points in April to 5.24%, while the rate for retail increased 29 basis points to 5.86% during the month.

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