CMBS Late-Pays Take Small Step Backward
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“Spreads began to widen” late this month, Clancy says.
NEW YORK CITY—CMBS delinquencies, which had steadily improved over the past several months, took a small step backward in June, Trepp LLC said Tuesday. The late-pay rate ticked upward five basis points to 5.45%, after making a significant, 17-bp improvement the previous month. Even so, delinquency is now 60 bps lower than a year ago and has declined 30 bps year-to-date.
“For most of the year, the commercial real estate markets have been the model of stability in terms of CMBS spreads, delinquency rates and lending levels,” says Manus Clancy, senior managing director at Trepp. At the beginning of this month, Clancy cited “incredibly low” spread volatility in May, helping to account for the decline in CMBS late-pays seen last month…
