By Steve Jellinek
The delinquency rate in September improved for the third consecutive month, easing eight basis points to 2.94 percent. The delinquency rate is up just four basis points from a year ago, but it is down six basis points in the year to date. Morningstar Credit Ratings believes the delinquency rate will hold below 3.0 percent after reaching an 18-month high of 2.19 percent in June, as there are fewer securitized commercial mortgages left that we expect will default at maturity, resolutions remain high and issuance has picked up.
Steve Jellinek is vice president of CMBS Research at Morningstar Credit Ratings. Commentary originally appeared in Morningstar Credit Ratings’ September 2017 CMBS Delinquency Report.