Delinquency rates jump 50% on US Commercial & Industrial loans

delinq

The St Louis Fed reports that delinquency rates on commercial and industrial loans is rising from 1% in Q4 2015 to 1.5% in Q1 2016. That is a 50% jump. Delinquent loans and leases are those past due thirty days or more and still accruing interest as well as those in non-accrual status.

So even it paltry levels of interest rates, business conditions aren’t such that businesses are thriving.  Current outstanding commercial and industrial  loans amount to $1.81tn. That puts delinquencies at $27bn.

Delinquencies on residential mortgages in Q1 2016 stands at 4.84% down from 5.17% in Q4 2015 and from the peak of 11.26% in Q1 2010 and triple the rates of 2005…

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