NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the October 2021 servicer reporting period. The October delinquency rate fell to 4.1%, down from 4.4% in September. This is the 16th consecutive month where the rate has declined or was flat from the previous month since peaking in June 2020, at 8.2%.
Lodging recorded the largest decrease in delinquency rates, to 9.3% from 10.2%, followed by retail (6.5% from 7.2%). Similar to recent months, the decline in lodging delinquencies was sizable, with 27 lodging loans totaling $493.8 million becoming current or resolved. A look at the conduit universe showed that delinquencies declined to 5.1%, down 30 basis points from the September delinquency rate of 5.4%. In October, the amount of conduit loans in special servicing also decreased for the sixth consecutive month, to $17.3 billion from $17.7 billion in September 2021.
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KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.