Monday, February 4, 2013

Trepp January Loss Analysis: Liquidation Volume Edges Lower while Severity Inches Upward






NEW YORK, NY, Feb. 4, 2013 -- Overall resolution volume dropped slightly in January according to Trepp, but loans resolved with losses greater than 2% ticked up along with loss severity. January average loss severity ended up at 44.39%, 733 basis points higher than December’s 37.06%.

January liquidations came in at $1.15 billion relative to the 12-month moving average of $1.36 billion.

The 158 loan liquidations resulted in $512.3 million in losses, translating to an average loss severity of 44.39%, above the 12-month moving average of 40.52%.

Since January 2010, servicers have been liquidating at an average rate of $1.17 billion per month.

The loan workout pipeline handled less total balance but more loans, as the number of CMBS conduit loans liquidated in January was 158, more than the 12-month average of 139. The average size of liquidated loans in January was $7.31 million, well below December’s $11.14 million and the 12-month average of $9.73 million.

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

Eric R. Gerard
Senior Vice President
Great Ink Communications
27 Union Square West, Suite 205
New York, NY 10001
(212) 741-2977

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