The commercial mortgage-backed securities market experienced the lowest levels of loss severity on conduit loans in February, according to analytics firm Trepp.

Loss severities fell 43% from January to the lowest total since November 2010.

Total liquidations of these loans is down 32% annually.

"As we've noted before, we suspect that in many cases, the small loss loans are actually refinancings that have taken place where the losses reflect small, unpaid special servicer fees or other costs," Trepp said in a report.?

"On this basis — after taking out the 'small loss' loans — about $560 million in such loans were liquidated in February," the firm noted.