CMBS Still Showing Low Delinquencies
SOURCE: Forbes
According to the latest loan delinquency index from Fitch Ratings, CMBS delinquencies rose to 0.30% which is only slightly higher than the historic low of 0.27%. Part of the increase was due to an increase in delinquencies for multifamily loans which reached $1 billion at the end of last month, up by 14.5% compared to $894 million at the end of January 2008. But, office delinquencies decreased by 1.1% in February.
The Fitch report shows that the slight rise in the delinquency index was due to the $130 million newly delinquent multifamily loans. Of all the delinquent CMBS loans, 60% are multifamily. The only loans that are accounted for in the Fitch ratings are those that have been delinquent for 60 days or greater. The full details of how Fitch determines their numbers can be found within the report.
The average loan delinquency index for the previous 12 months is equal to 30 basis points (bps). Managing Director Susan Merrick states that "Multifamily delinquencies continue to be overrepresented in the index". Even though 60% of all delinquent CMBS loans are multifamily they only represent 14.6% of the Fitch-rated universe.
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According to the latest loan delinquency index from Fitch Ratings, CMBS delinquencies rose to 0.30% which is only slightly higher than the historic low of 0.27%. Part of the increase was due to an increase in delinquencies for multifamily loans which reached $1 billion at the end of last month, up by 14.5% compared to $894 million at the end of January 2008. But, office delinquencies decreased by 1.1% in February.
The Fitch report shows that the slight rise in the delinquency index was due to the $130 million newly delinquent multifamily loans. Of all the delinquent CMBS loans, 60% are multifamily. The only loans that are accounted for in the Fitch ratings are those that have been delinquent for 60 days or greater. The full details of how Fitch determines their numbers can be found within the report.
The average loan delinquency index for the previous 12 months is equal to 30 basis points (bps). Managing Director Susan Merrick states that "Multifamily delinquencies continue to be overrepresented in the index". Even though 60% of all delinquent CMBS loans are multifamily they only represent 14.6% of the Fitch-rated universe.
Read full report »
