CMBS Defaults Climb Above 10%

NEW YORK CITY-The unpaid balance on year-to-date loan defaults through the third quarter already exceeds the 12-month total for 2009.

By Paul Bubny | Updated on October 22, 2010

NEW YORK CITY-In terms of basis points, the pace of CMBS defaults may have moderated in the past few quarters, but it has now cumulatively climbed above the 10% mark, Fitch Ratings said Friday. Defaults for fixed-rate US CMBS jumped 112 basis points in the third quarter to 10.6%, the ratings agency said, compared to a 133-bps rise to 9.48% at the end of the second quarter.

Last week, Horsham, PA-based Realpoint said that despite another large amount of monthly liquidations in September, the corresponding percentage of loans by unpaid balance in special servicing increased to 11.8% of all CMBS by unpaid balance in September, up from 11.74% a month prior. Realpoint said it’s the result of continued new loan transfer activity on a monthly basis.

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