In the real economy, as opposed to the one that’s feeding Wall Street fantasies, many individuals and businesses are going bankrupt. That trend is still gathering steam. From Tyler Durden at zerohedge.com:
Delinquency rates across commercial properties have shot up faster than at any other time.
As thousands of restaurants, hotels, and local businesses in the U.S. struggle to stay open, delinquency rates across commercial mortgage-backed securities (CMBS) – fixed income investments backed by a pool of commercial mortgages – have tripled in three months to 10.32%.
As Visual Capitalist’s Dorothy Neufeld notes, in just a few months, delinquency rates have already effectively reached their 2012 peaks. To put this in perspective, consider that it took well over two years for mortgage delinquency rates to reach the same historic levels in the aftermath of the housing crisis of 2009.
The above chart draws data from Trepp and illustrates the recent shocks to the CMBS market, broken down by property type.