Late Payments on CMBS Jump Most in 16 Months, Wells Fargo Says via Bloomberg

The delinquency rate on commercial mortgages packaged into bonds recorded the largest increase since November 2010 amid a drop-off in the resolution of bad loans, according to Wells Fargo & Co.

The proportion of payments more than 30 days late rose 42 basis points to 10.04 percent last month, Wells Fargo analysts said in a March 30 report. Property owners fell behind on $4.3 billion in debt tied to everything from skyscrapers to strip malls, compared with about $3.3 billion the prior month, the analysts said.

The rise contrasts with readings last year that signaled an improvement in the delinquency rate in the roughly $600 billion commercial-mortgage backed securities market. March marks the second month in a row of “meaningful” increases following “more muted” changes from mid-2011 through January, Credit Suisse Group AG analysts said of the group’s preliminary estimates for the month.

Read more...Late Payments on CMBS Jump Most in 16 Months, Wells Fargo Says - Bloomberg