CMBS: Down in Europe, but up in US

Reuters writes that a record number of CMBS deals in Europe went bad in April. Twelve were handed over to special servicers during the month, while a further 12 were classifed as delinquient.

Recovery in the region’s CMBS market has been hampered by an acute real estate funding gap — the difference between debt balances and available refinancing — wrought by a shortage of available bank capital and a slowdown in economic recovery.

Meanwhile, across the pond the Wall Street Journal reports that

 For the first time in half a year, the delinquency rate for commercial mortgage-backed securities fell in May, according to loan-research service Trepp LLC.

The rate last month fell slightly, to 9.6% from 9.65% in April, backing off what had been a record for commercial mortgage-backed security loans with missed payments. The downward tick comes as delinquencies appear to be reaching a plateau, with commercial real-estate prices recovering in many markets in the U.S.


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