The month of July brought a significant jump in the volume of commercial mortgage-backed securities loans liquidated and a concurrent drop in the overall loss severity rate, according to CMBS analytics firm Trepp.

July's liquidation volume neared record highs when compared to the volumes recorded since Trepp began tracking results in 2010. Loan liquidations totaled $2.05 billion, which compares to the 12-month moving average of $1.35 billion.

Loans with losses accounted for 135 in July, posting the highest average liquidated loan size. Additionally, the average size of liquidated loans was $15.2 million, up from $11.7 million in June — the highest monthly average since 2010.

The 135 loan liquidations in July resulted in $893.8 million in losses, translating to an average loss severity rate of 43.7%, Trepp noted.

Since 2010, servicers have been liquidating loans at an average pace of $1.2 billion per month, the report concluded.