Delinquencies in commercial mortgage backed securities jumped by 213 basis points to 3.59% from 1.46%.
The retail and hotel sectors are seeing the worst delinquencies as the coronavirus has been especially hard on those industries.Delinquencies in commercial mortgage backed securities last month had their largest one-month surge since Fitch Ratings began tracking the metric nearly 16 years ago. It may not be surprising, given the massive economic impact of the coronavirus pandemic, but the numbers are still remarkable. And this is just the beginning. Fitch analysts are projecting that the impact from the coronavirus pandemic will drive the delinquency rate to between 8.25% and 8.75% by the end of third quarter of this year.
the economy is not stock paper scissors market
Divide the risk and conquer.
The housing market will be Screwed as people literally are not getting rent/delinquent on loan payments. Housing supply falls in the hands of lenders with no demand from the public to buy them back.
You think this is bad? Watch what happens when the GOP allow PUA to expire on families. 🪦💀
Nah your kidding! The worst is yet to come.😳😆🤓
uggalugga largest one-month spike in last 16 years AND that's with PPP funds 😬
& water is wet.
And we continue to whistle past the graveyard
V shape recovery my ass
With all this printing I’m concerned that the black swan can be inflation. The worst case modeling uses the late 70s. What if we blow through that? Who says that the dollar will forever be the store of value. Maybe grain or oil?
Bad financial news no longer matters to the market. It will continue going up because banks and large corporations have an endless supply of cash thanks to the FED. Income inequality was already a huge problem but recent moves have created a sort of hyper-income inequality.
People are getting wise to the stock market. If nobody ever pulls there money out then there is nothing to worry about. Who really cares what the companies make for profits? It doesn't actually matter. Nobody sell and everything will be fine.
Bad financial news no longer matter to the market. It will continue going up because banks and large corporations have an endless supply of cash thanks to the FED. Income inequality was already a huge problem but recent moves have created a sort of hyper-income inequality.
Glad Multifamily is hanging in there below .60% , but still that 40% jump is shitty to see!
Oh well ...
Thank the federalreserve for ruining America. Profits and money doesn’t matter anymore.
We live in interesting times.
B_REInvest
And yet.....The Stock Market does not seem to mind. Wonder if .stevenmnuchin1 is planning to make another million or 2 off of this mortgage crisis again?
federalreserve will pay for that too. Anything else? We won't stop printing money and keep the rates 0% to pump the stock prices and there is no plan to reduce the debt.
Who needs offices!!! Who needs real estate!!! Pay me my stimulus so I can buy Apple and Amazon! Why work when money falls from Fed trees!! (Are you listening Fed to my complacency?)
Nothing to see here. Move along. Apple, Microsoft and Amazon will buy these mortgages. Mkt S&P 500, $5,000! Why not, say all these let them eat cake fund managers?
That’s good for another 200 points on the nasdaq.
Zombie market will go up tomorrow as usual . Nothing is new here
Oh my! A jump of 213,000,000 micro-basis-points? Oh, it's still less than 4%. CNBC is just a bunch of leftist scumbags pushing fake business news.
Priced in. JPow will buy up all the MBS.
So what? Look tesla and amazon
Does it really matter in US Market ? As stock is surging might get ADDITIONAL Fed support to push their stock further up for Investor
Buy stocks!
Who cares about mortgage delinquencies the stock market is going up!!
Not a fun time for lenders. I suspect there will be more commercial pain coming. Not just in mortgages.
Well hold ur hat in August!