The loss severity rate on commercial mortgage-backed securities loans reached a two-year high in August as loan liquidations edged higher and the loss severity rate moved aggressively from 37.96% to 53.29%, Trepp Analytics said.
The CMBS research firm said servicers picked up the pace on CMBS loan liquidations in August, with total liquidations hitting $1.44 billion, up from the 12-month average of $1.34 billion.
The 141 CMBS conduit loan liquidations handled in August led to $767 million in total losses, Trepp said.
“While the resolved loan count fell from July’s 163, the average size of liquidated loans in August spiked to $10.21 million from $8.48 million month-over-month. The 12-month average for liquidated loan size sits at $9.35 million,” Trepp added in its new report.