The number of delinquent loans backing commercial mortgage-backed securities dropped significantly in May, according to a report by Trepp, a commercial real estate analytics firm.
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Trepp said in a release that nearly $700 million worth of loans cured helped the delinquency rate decline, as well as $1.2 billion in CMBS that were paid off at or below par.
"Conditions remain very favorable for the CMBS new-issue market as spread volatility was incredibly low in May," said Trepp senior managing director Manus Clancy. "Distressed legacy loans continue to get flushed through the system, and every month we seem to see more trophy properties sell at record-level valuations."
