Delinquency rates refer to the percentage of loans that are overdue or in default compared to the total number of loans or outstanding debt. This metric is commonly used in the context of consumer credit, mortgages, and other loan products to gauge the credit health of borrowers within a certain period. A higher delinquency rate indicates a greater proportion of borrowers failing to make scheduled payments, which can signal potential economic issues or increased risk in lending practices. Delinquency rates are important for lenders, investors, and financial institutions as they assess credit risk, set loan terms, and make decisions about lending strategies.
Mary Beth Fisher, a senior fixed income strategist at Santander, has observed a concerning trend of increasing delinquency rates. This shift in collateral performance is particularly evident in Commercial Real…