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CMBS delinquencies rise — contrary to analyst expectations

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The delinquency rate on loans backing commercial mortgage-backed securities jumped to the second highest rate on record in November, up 35 basis points to 8.93%, according to a monthly report released by Trepp analytics firm. A total of $60.3 billion in CMBS loans are delinquent. Of the nearly 9% that are delinquent, most (2.92%) are more than 90 days past due. November's CMBS delinquency rate is second only to September's rate of 9.05%. The delinquency rate in November 2009 was 5.65%. The rate in October dipped down to 8.58% boosting analysts' anticipations delinquencies would continue to fall. Now they are not so confident. "We frequently pointed out that as servicers became more adept at processing troubled loans, the delinquency rate would continue to see downward pressure," the Trepp report said. "The November numbers throw cold water on the enthusiasm that's built up over the last six months." Delinquencies for loans on multifamily properties spiked in November, making it the worst performing sector for the first time in more than a year. The delinquency rate now stands at 15.8%, up from 14.6% in October and up from 8.8% one year ago. The lodging sector of CMBS fell to 14.6% from 14.9% in October, but still maintains the second highest rate, followed by the retail sector (7.6%), the office sector (7%) and the industrial sector (6.6%). Write to Christine Ricciardi.

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