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NEW YORK, NY – Trepp, LLC, the leading provider of
information, analytics, and technology to the CMBS, commercial real estate, and
banking markets, released its February 2014 US CMBS Delinquency Report (available at www.trepp.com/knowledge/research).
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| Manus Clancy |
Trepp has
anticipated continued improvement in the US CMBS delinquency rate, as February
marks the ninth straight month in which the rate has fallen.
The rate is now
6.78%, a 47-basis-point drop month-over-month. The last time the delinquency
rate for US commercial real estate loans in CMBS was below 7% was February of
2010.
Since October
2013 when it was announced that CWCapital would be selling a large number of
non-performing assets, Trepp has been tracking both the completed and impending
sales.
With over $3 billion in distressed assets out for bid, Trepp estimated a
50-basis-point decrease in the delinquency rate as a result of removing those
loans from the delinquent category. A big chunk of the assets were resolved in
time for the February remittance cycle, which explains the increase in loan
liquidations this month.
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| Joe McBride |
The total number of loans resolved with losses in
February was more than twice the amount posted in January.
“The long-awaited resolution of the
CWCapital distressed asset portfolio helped push delinquencies to multi-year
lows,” said Manus Clancy, Senior Managing Director at Trepp.
“Beyond that, the
removed uncertainty and decent results gave investors greater confidence to
reach for yield in February. The outcome was a big rally of legacy mezzanine
paper over the last 28 days."
New delinquencies totaled $1.4 billion
in February, down from $1.8 billion in January. In addition, all of the five
major property types saw their delinquency rates improve over the course of the
month. While retail loans remain the best performing property type, the
industrial delinquency rate fell by more than 1%.
For a complete copy
of the company’s news release, please contact:
Joe McBride, Research
Analyst
Trepp LLC
212-754-1010
Eric Gerard, Lindsay Church
Great Ink Communications
212-741-2977
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