CRED iQ®

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Bloomberg this week — see the snapshot below:

CRE CLO Article by Bloomberg with CRED iQ's data & insights from Founder & CEO Michael Haas in Bloomberg earlier this week. Here are the highlights: New deal creation is up slightly this year, with $6.6 billion in sales so far, surpassing last year’s full-year total of $6.1 billion, the bank said. Even so, those levels are still just a fraction of the $29 billion issued in 2022 and the record $45 billion from 2021, according to data from the note.  While there may be signs of a recovery for newly issued deals, most of the headwinds in the market concern deals issued in prior years. A surge in interest rates in 2022 depressed valuations of underlying properties backing CRE CLO debt, forcing managers to buy out or modify bad loans at elevated levels. In fact, distress rates in CRE CLOs rose to 13% in September, a new record, from 10.3% in July, according to new numbers from data provider CRED iQ. These include any loan reported 30 days delinquent, past its maturity, specially serviced, or a combination of these. “Rates will have to come down a lot more for a lot of these CRE CLO borrowers to get back to where their expectations were at underwriting in 2021 and 2022,” Michael Haas, founder and CEO at CRED iQ. “Each month the CRED iQ distress levels keep ticking up and thousands of the properties are still reporting DSCRs below breakeven.” Other Top Stories

Reuters -- using CRED iQ®'s office loan data and our maturity & refinance analysis in their story here: Quick highlights LOWER RATES BOOST With a lack of a pricing benchmark, property owners have been reluctant to sell because lower transaction volumes created a mismatch in pricing expectations. They have instead chosen to extend or refinance existing loans to tide over to a period when interest rates are being cut and improve their ability to retain these properties. The real estate industry has suffered from a double whammy of low vacancies and revenues, which have made it difficult for property owners to make interest payments on existing loans. In addition, roughly a third of loans maturing in 2024 have either failed to pay off or refinance successfully on time, according to market data provider CRED iQ.

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Awesome to see! Our data & charts in WSJ yesterday! Here are the highlights! The value of commercial real-estate loans in foreclosure nearly tripled between January and August this year to reach $19.2 billion, according to an analysis of securitized property loans by CRED-iQ. Other measures of debt distress also rose during the period. Landlords who took out floating-rate loans, which shot up with prior interest-rate increases, are “getting clobbered most,” said Mike Haas, CEO of CRED-iQ.

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