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NEW YORK, NY – Trepp Reports November Loss Analysis: Volume
and Loss Severity Bounce Back
“November CMBS loss severity landed at 48.10%, up
considerably from October's 38.58% and above the 12-month moving average of
44.34%,” said Joe McBride, a senior analyst with Trepp.
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| Joe McBride |
“The number of loans
liquidated was 105, resulting in $579.64 million in losses and an average
disposed balance of $11.48 million, in line with the 12-month average of $11.43
million.
“Office and retail properties accounted for the majority of
liquidated loans and pushed loss severity up with average loss rates of 68.47%
and 51.26% respectively.”
After two months of relatively low liquidation volume,
November brought a return to average levels.
Liquidation volume came in at $1.2 billion in November, up
from $960 million in October and $870 million in September. Volume registered on
par with the 12-month moving average of $1.18 billion.
Further, the majority of loans liquidated fell into the
greater than 2% loss severity category.
November loss severity landed at 48.10%, up considerably
from October's 38.58% and above the 12-month moving average of 44.34%.
The number of loans liquidated in November was 105,
resulting in $579.64 million in losses. These liquidations translated to an
average disposed balance of $11.48 million, in line with the 12-month average
of $11.43 million.
Since January 2010, servicers have been liquidating at an
average rate of $1.17 billion per month.
For a complete
copy of the company’s news release, please contact:
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