The delinquency rate for the debt underlying commercial mortgage-backed securities was 7.2% last month, up from 2.3% in April, according to data tracker Trepp.
The surge in delinquencies indicated mounting pressure on the commercial mortgage market as the economic fallout from the coronavirus pandemic has crimped borrowers’ incomes.
Trepp’s report states, “Given that about 8% of loans had missed payments for the April remittance cycle, the fact that delinquencies went up less than 5% has to be viewed as a small ‘win.’”
