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DBRS Morningstar Monthly Highlights - November Remittance

DBRS Morningstar presents the Monthly Highlights report, which covers CMBS market activity and performance for conduit and SASB loans (excluding agency loans). In November:

• The delinquency rate set another low since the onset of the pandemic in March 2020, improving 31 basis points (bps) to 4.13%.
• The delinquency rate has declined for 17 consecutive months and is down 404 bps from a year ago.
• Compared with year-ago levels, the hotel sector saw the largest percentage decline in delinquent balance, tumbling 50.8%.
• The special-servicing rate fell for the 14th straight month to 6.83% but still sits well above the low of 2.59% set in February 2020.
• All five major property types saw decreases in their special-servicing rates. The largest declines came in the lodging and retail sectors.
• Both the volume of liquidated loans and losses rose modestly for the first time in three months, with retail assets accounting for roughly 70% of both the liquidated loan balance and the total loss.
• The maturity payoff rate sunk below 60% for the first time in four months, with the debt backed by two large assets accounting for more than 95% of the maturity default balance.
• More than $13.5 billion in conduit loans have matured this year and just 57.3% have paid off on time, ahead of last year’s 46.3% rate but still significantly below 2019's maturity payoff rate of 78.9%.
• Nearly $28 billion in CMBS will mature in 2022 and we expect the maturity payoff rate to come in around 70%.