Covid-Hit Property Loans Are Re-Defaulting to Spur Moody's Warning
- Owners struggle to re-lease properties, says Moody’s Analytics
- Businesses assessing space needs, hold off on re-committing
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Troubled real estate loans for the likes of hotels and offices that saw payments get back on track after the 2020 crash are re-defaulting -- signaling more pain for commercial mortgage-bond investors.
At least 13 loans that went 60 or more days delinquent by August 2020 had resumed timely payments at some point, but then re-defaulted between last October and March. That’s according to a new study from Moody’s Analytics focused squarely on loans bundled into commercial mortgage-backed securities.