February 13, 2019
The average severity for CMBS loans resolved with losses surged higher in January. New research by Trepp shows a total of 52 loans, totaling $669.7 million in outstanding balances, were disposed last month.
Trepp notes, more than $469.2 million of that debt was written off for a 70.1% loss severity, which is up 16% month over month. That represents the third-highest average severity figure measured in the nine years Trepp has been running this analysis. “Retail debt was badly bruised in January, as 23 loans totaling $314.0 million were disposed with losses (69.1% severity),” wrote Trepp.
The overall increase followed moderate levels of losses for the last four months, Trepp points out, in its assessment of the CMBS loan losses.
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