Commercial Mortgage Late Payments Decline Led By 2007 Loans via Bloomberg

The delinquency rate on U.S. commercial-mortgages packaged into bonds declined in August, led by loans from the market’s peak five years ago, according to Morgan Stanley.

Payments more than 30 days late fell 8 basis points to a 12.13 percent rate this month, Morgan Stanley analysts said in a report today. The measure for deals issued at the height of the nation’s property bubble fell 23 basis points to 15.53 percent, the New York-based analysts led by Richard Parkus said.

Property owners have struggled to pay off maturing debt taken on in 2007 when commercial-mortgage bond sales surged to a record $232 billion and real estate values peaked. The performance of loans from that year, which has been “extremely” poor, the analysts said, improved this month as fewer borrowers needed to refinance.

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