Commercial Real Estate

As the world continues to deal with the fallout from the COVID-19 coronavirus, the commercial mortgage backed security (CMBS) market, among other fixed income markets, has experienced adverse effects. As shown in Exhibit 1, the commercial real estate market’s aggregate delinquency rate has risen to levels not seen since the GFC in the wake of lockdowns and other restrictions meant to combat the spread of the virus.* However, the delinquency rate took only three months to rise a level that it took three years to reach during the GFC.