Fitch's second-quarter U.S. CMBS cumulative default rate for fixed-rate CMBS increased 10 basis points from 2Q 2012 to 13.7%, an increase that shows defaults are still rising, but more slowly.
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“Last year at this time the default rate was 13.2%,” Mary MacNeill told this publication.
Also during the second quarter of this year, 97 loans totaling $1.4 billion newly defaulted. This was down from 101 loans totaling $2 billion that newly defaulted in 1Q13.
“Another encouraging sign is that most newly defaulted CMBS loans are much smaller in size,” Fitch noted, citing data showing 72 of the 97 newly defaulted CMBS loans were under $15 million.
Office continued to be the greatest component of new defaults, representing 47 loans totaling $647 million.
“The majority of the office defaults were in secondary markets, which continue to be under pressure,” according to Fitch.
