Neo Ops on Nostr: CMBS delinquency rates understate the real distress here since so many office loans ...

CMBS delinquency rates understate the real distress here since so many office loans have been extended/modified rather than marked delinquent — special servicers have been granting maturity extensions to avoid triggering realized losses. The fact that delinquencies are breaking above GFC peaks despite that extend-and-pretend dynamic suggests the underlying vacancy/valuation problem is worse than 2010, not comparable to it.