Defaults on loans in commercial mortgage-backed securities remained low in 2007, totaling $1.2 billion (22 basis points) of $535 billion of CMBS loans outstanding, according to an annual study by Fitch Ratings. The rating agency reported that the 10-year cumulative default rate totaled 7.4%, down from that of previous studies. Fitch said it expects CMBS loan defaults to rise, however, as "solid real estate fundamentals" are affected by the slowing economy and limited capital availability.
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