CMBS performance still appears to be stabilizing somewhat, at least for the time being, recent commentary from Moody's Investors Service indicates.
The current forecast suggests CMBS delinquencies will level off or trend downward until 2016-2017 when the 10-year loans that that were “aggressively” underwritten during the peak in 2006-2007 mature and face their “day of reckoning,” Tad Philipp, director of commercial real estate research at Moody's Investors Service, told this publication.
The delinquency rate on loans included in U.S. commercial mortgage-backed securities transactions (including both “conduit” deals of standard sized loans originated for securitization, and “fusion” deals that also include larger loans) inched down two basis points in January to 9.3%, according to Moody's.
During January, there were approximately $6.4 billion in newly delinquent loans but $7.2 billion in loans were resolved, leading to a $0.8 billion net decrease in delinquent loans outstanding, according to Moody's, which also noted that the total balance of delinquent conduit loans has now declined eight of the last 11 months.
