The outstanding commercial and multifamily mortgage debt fell to $3.04 trillion at the end of the second quarter, Standard & Poor’s highlighted in a short note this morning.
According to analysts, the continued CRE deleveraging is a credit positive for the sector even though decreasing CMBS outstandings can hurt liquidity.
The numbers dropped $25 billion quarter-over-quarter, $80 billion year-over-year, and $365 billion (negative 11%) from the the peak in the first quarter of 2009, S&P analysts stated.
The current ratio of CRE debt/GDP is 19.5%, which is the third quarter of 2005 level.
The biggest drops year-over-year were in securitizations and holdings at commercial banks, S&P analysts said. Meanwhile, they stated that the GSEs and life companies have gained market share.
