This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Trepp US CMBS Delinquency Rate Inches Higher In March

NEW YORK, April 2, 2013 /PRNewswire/ -- Trepp, LLC, the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets, released its March 2013 U.S. CMBS Delinquency Report today (available at http://www.trepp.com/knowledge/research).

(Photo:  http://photos.prnewswire.com/prnh/20130402/PH87290-a )

(Photo:  http://photos.prnewswire.com/prnh/20130402/PH87290-b )

The delinquency rate for U.S. commercial real estate loans in CMBS inched higher by eight basis points in March to 9.50% after reaching the lowest level in a year last month. Overall, the rate has fallen 84 basis points since hitting its all-time peak of 10.34% at the end of July 2012.

Loan resolutions continued to drop in March, falling from just under a billion dollars in February to almost $850 million. There were $2.8 billion in newly delinquent loans reported in March, up slightly from the previous month. There are currently $52.1 billion in U.S. CMBS loans 30 or more days delinquent, excluding loans that are past their balloon date but current on interest payments. There are about 3,300 loans totaling $64.8 billion currently in special servicing.

"A close examination of the data reveals that the weakening experienced in March is not nearly as worrisome as it seems," said Manus Clancy, senior managing direction of Trepp. "The jump in the rate was caused primarily by a reversal of status of a number of floating rate hotel loans." 

Among the five major property types, hotel loans led the pack for a second month in a row, but this time for the wrong reason. Lodging saw a 174 basis point weakening between February and March. As Trepp noted last month, many large hotel loans "cured" in February by being categorized as "performing matured balloons" instead of "non-performing matured balloons." Many of these loans were reclassified again in March as "non-performing matured balloons." While both categories include loans that are past their maturity dates, performing matured balloons have interest payments being made and thus are not counted as delinquent.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs