More good news for the vulture crowd! (And for all those commercial real estate and law firms frantically forming distressed asset groups.)
Barclays analysts told Bloomberg that commercial mortgage delinquincies spiked in November, and that they expect the trend to continue through 2009:
Payments more than 60 days late on commercial real estate loans that were bundled together and sold as bonds increased to 0.69 percent last month, compared with 0.57 percent in October and 0.51 percent in September, Barclays data show.
The “relative spike” in delinquent loans marks the “beginning of a sustained, upward trend,” Barclays analysts led by Aaron Bryson in New York said in a report yesterday. “We have repeatedly stressed that CMBS delinquencies are a lagging indicator of performance and tend to lag changes in employment by close to a year.” read more »
