Volatility in market-peak securitizations, according to a recent Morningstar report, “is to be expected as balloon maturity and default risk remains an issue for highly seasoned CMBS transactions as loans are unable to pay off.” As if to illustrate this point, the CMBS delinquency rate shot up in March after showing monthly declines since last summer.

Last week, Fitch Ratings in New York City put the increase at 13 basis points, with late-pays among Fitch-rated CMBS rising to 8.43% from 8.3% in February and individual property sectors experiencing even larger increases. Offic