September 3, 2020
August saw the Trepp CMBS delinquency rate continue its downward trend after posting the largest decline in four years in July. The overall CMBS delinquency rate in August was 9.02%, a decline of 58 basis points from the July number, which itself followed a spike in June to 10.32%.
Trepp’s Manus Clancy writes that about $6.5 billion in CMBS loans were “cured”—i.e. brought back into current status—in August, helping the rate post another sizable decline.
“Some of these cures came as a result of forbearances being granted and borrowers being authorized to use reserves to make the loan current,” according to Clancy. “In other cases, relief was canceled or withdrawn by the borrowers and the loans were brought current without relief.”
The August numbers reflected sizable improvements in the rates of 30-day and 60-day delinquencies, Clancy writes. However, 90-day delinquencies rose to 4.02% from 2.65% in July.
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