Monday, May 5, 2014

Trepp April Loss Analysis: Volume Retreats with Loss Severity


NEW YORK, NY -- After two months of elevated volume, April was relatively quiet on the CMBS loan liquidation front.

Another block of assets are up for auction in May and June, but April seemed to be a breather for special servicers. Volume reached $844.16 million in April, less than half of March’s $1.95 billion. Of the loans that were liquidated, 67% (by balance) fell into the greater than 2% loss severity category.

 April loss severity came in at 39.77%, down from March’s 52.49% and well below the 12-month moving average of 47.57%.

 The number of loans liquidated in April was 63, resulting in $335.75 million in losses. The average disposed balance in April was $13.40 million—just under the 12-month average of $14.37 million.

Since January 2010, servicers have been liquidating at an average rate of $1.21 billion per month.

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

Eric Gerard


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