Barely a few minutes after reading an article in the Wall Street Journal about banks finally opening the “spigot for commercial real-estate,” the folks over at Trepp issued their monthly report on the delinquency rate for commercial mortgage backed securities (CMBS); let’s just say it isn’t good.

After two months of very minimal rate increases, the number jumped in April, 23 basis points, to 9.65 percent, “the highest reading in the history of the CMBS market,” according to Trepp.

To say the recovery is, as the report notes, “bumpy,” is putting it mildly. The rate should be going down for two reasons:

First, as new CMBS deals, which are generally current loans, are added to the pool of all CMBS loans, the larger denominator in itself should push the rate down. Second, “special servicers have been resolving a greater number of troubled legacy CMBS loans than they were 18 months ago,” according to Trepp. And yet the rate goes higher.

So now the balance of delinquent loans exceeds $62.8 billion, up from $61.5 billion in March.

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