Several factors will support new loan credit quality next year, including re-covering CRE fundamentals, capital market liquidity, demand for real assets and some degree of conservatism in underwriting, said Moody’s.
Issuance of rated non-agency MBS and ABS rose significantly during the third quarter, although both markets continued to lag behind 2019 on year-to-date volume. (Includes two data charts.)
The delinquency rate on commercial MBS in November slipped modestly thanks to continued COVID-related relief. The recovery ahead will be slow, particularly for the lodging and retail sectors.
Democrats said the Treasury’s decision to end the TALF facility at the end of the year was a political move to prevent the incoming Biden administration from stabilizing the economy.
Non-agency CMBS issuance doubled from the second to the third quarter, but production remained well below 2019 levels. Agency multifamily MBS set a record. (Includes data chart.)
The delinquency rate for commercial MBS continued to improve in September, but the “special servicing” rate surged to a seven-year high, signaling that economic fallout from the pandemic is still festering.