DBRS Morningstar CMBS Monthly Highlights—February Remittance: Delinquency and Special Servicing Rates Jump
-- The delinquency rate for loans packaged in U.S. commercial mortgage-backed securities (CMBS) jumped 24 basis points (bps) to 3.07%, the largest monthly increase since the summer of 2020.-- Office-backed loans saw the largest delinquency rate increase, rising 63 bps, followed by multifamily with a 32-bp increase.
-- Compared with year-ago levels, the hotel sector saw the largest percentage decline in the delinquency rate, falling 320 bps, followed by retail with a decline of 71 bps.
-- The special servicing rate rose for the first time in three months and now sits 74 bps above its July 2022 low.
-- Compared with year-ago levels, the office sector saw the largest increase in the special servicing rate, rising 140 bps, followed by multifamily with an increase of 108 bps.
-- Distressed property sales remained muted, registering just $224.8 million, posting a 12-month average of only about $255 million.
-- The maturity payoff rate rose moderately to 66.9%, up from 60.2% in January.
-- The year-to-date maturity payoff rate stands at 63.0%, and our 2023 outlook for the maturity payoff rate isn't much changed at roughly 60% because of persistent complications that will continue to challenge refinancing maturing office and mall loans.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.