Thursday, February 6, 2014

Trepp’s January Loss Analysis: Volume Steady, Severity Jumps






NEW YORK, NY – Trepp reports CMBS liquidation volume remained steady in January, but several large losses pushed the average loss severity up significantly.

Liquidation volume registered $1.28 billion in January, equal to December's volume and slightly above the 12-month moving average of $1.19 billion. Of the loans that were liquidated, 94% fell into the greater than 2% loss severity category.



January loss severity came in at 58.51%, up from December's 50.36% and more than 10 percentage points higher than the 12-month moving average of 46.82%. The number of loans liquidated in January was 79, resulting in $746.85 million in losses. The average disposed balance in January was $16.16 million--well above the 12-month average of $12.56 million.

Since January 2010, servicers have been liquidating at an average rate of $1.18 billion per month.

Below are the overall statistics for loans liquidated from January 2010 to January 2014. The first table includes only US fixed-rate conduit loans. (If a loan somehow managed to be liquidated with a profit or at par, we excluded the loan. If the loan suffered a loss of $1 or more, it is included in the chart numbers above.

For a complete copy of the company’s news release, please contact:

     

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