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DBRS Morningstar Monthly Highlights - October Remittance

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

-- The delinquency rate set another low since the onset of the pandemic in March 2020, tumbling 69 basis points (bps) to 4.44%.
-- The delinquency rate has declined for 16 consecutive months and is down 396 bps from a year ago.
-- The special-servicing rate fell for the 13th straight month to 7.10%, but still sits well above the low of 2.59% set in February 2020.
-- The volume of both liquidated loans and losses remained low in October, with retail and hotel assets accounting for the bulk of the losses.
-- The payoff rate of maturing CMBS loans registered above 70% for the third consecutive month on the back of strong office and retail performance.
-- More than $1 billion is scheduled to mature through the end of the year and we expect the payoff rate to finish the year between 55% and 60%, based on a damped outlook for many hotel and retail loans.
-- Nearly $28 billion in CMBS will mature in 2022 and we expect the maturity payoff rate to come in around 65% to 70% as many hotel and retail assets, which comprise a little more than 50% of the total, face refinancing hurdles tough to overcome because of declining net cash flow.