In July, the delinquency rate on commercial mortgage-backed securities (CMBS) reached 8.1%, the highest level in 11 years. The number of overdue loans has quadrupled in just 1.5 years.
The US commercial real estate sector is on the verge of a wave of bankruptcies similar to the 2008 crisis. Around 70% of the sector’s debt is concentrated in regional banks, which are already under significant pressure. However, given the share of these mortgages in the total volume and their concentration in regional banks, it is likely that this will not have a large-scale impact on the markets as a whole, although it will create some difficulties.
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