December 10, 2009
CMBS loans delinquent beyond 30-days now stands at about 4.47% according to Moody’s. The low was reached in late 2007, at .22%. The number is up 46 basis points month-over-month. Hit the hardest is the hospitality sector, where the delinquency rate is at 7.8%.
In other news, JPMorgan sold off $500M of CMBS for Inland Western.
Inland Western’s two top-rated classes sold at yield premiums of 1.5 percentage points and 2.05 percentage points above an interest-rate benchmark, about a third of current levels on existing CMBS made at the height of the real estate boom. The yield spreads were at the low end of expectations.
Yield spreads on 10-year CMBS sold under less conservative standards are about 5.85 percentage points, according to JPMorgan data.
…and from Bloomberg
Today’s sale is backed by a $625 million loan from JPMorgan to Inland Western. The loan allowed the company to pay off “virtually all” of its 2009 maturities and a “substantial portion” of 2010 debt, Inland Western Chief Executive Officer Steven Grimes said in a Dec. 1 statement.
And the saga continues …. credit markets starting to open up those with reasonable LTV and realistic underwriting while underwater assets continue to be squeezed.
- Commercial/Multi-Family Delinquency Rates Continue Hike Up
- Realpoint CMBS June Update – 2.275% Delinquency In May
- $46B in CMBS Balances Now Delinquent
- Flood of CMBS Rating Cuts Coming
- CMBS Ratings Being Reviewed – It’s a Slippery Slope