Delinquencies on commercial mortgages bundled and sold as bonds jumped 51 basis points in July, the largest increase in more than 12 months, according to New York-based real estate data provider Trepp LLC.
The rise raises concerns that the market continues to erode three years after the financial crisis largely cut off funding to borrowers.
The increase follows two months of declines. "Much of the positive momentum that had been surrounding the CMBS market recently has now all but vanished in the past few weeks,” according to the statement from Trepp.
More than $22 billion of commercial-mortgage bonds have been sold this year, compared with $11.5 billion in all of 2010, according to data compiled by Bloomberg. Sales plummeted in 2008 from a record $234 billion in 2007, according to data compiled by Bloomberg.
