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[Iblayz]

Maybe we are about to hear more about this now that we've almost forgotten about it. A lot of commercial stuff that the banks can ignore by rolling the loans.....well sooner or later.....reality bites. At worst though.....months away from really being a concern. Even if it ever matters, Wall Street will ignore it and spin it as no biggie until it ain't......because that's just what they do. Anyway.....from ajc.com....

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Delinquent or defaulted commercial mortgage-backed securities, or CMBS, reached 21.3
percent in December for metro Atlanta, an all-time high, according to Trepp LLC, a real estate research firm.

With a $12.8 billion CMBS balance outstanding, $2.73 billion was 30-plus days delinquent or worse — compared with 13.2 percent the previous December.

More....

Trepp said CMBS delinquencies nationwide increased in December to 9.58 percent, up from 9.2 percent a year ago. December was the third increase in the past four months.

Major banks, life insurance companies and investment banks are among the other common commercial property lenders, but CMBS, which typically make higher leveraged loans at high interest rates, became popular during last decade’s boom.

The Trepp report does not include delinquencies of other loan types.

Some commercial real estate entities had viewed last year and this year warily.

The timing of recent delinquencies and defaults partly has to do with the market conditions and timing of when the loans were made, said Stewart Calhoun, executive director of the capital markets group at Cushman & Wakefield in Atlanta.

The peak of the commercial real estate market was 2006 and 2007, both in terms of number and price of deals. Many CMBS loans were five-year loans, often with bulk payments of the principal due at maturity.

In the boom years, many borrowers and lenders expected refinancing would be relatively easy as property values grew. But values didn’t, and the economy flopped.

http://www.ajc.com/b...gh-1290241.html