There were greater losses for commercial mortgage-backed securities conduit loans and loss severities in May compared to the previous month, according to Trepp.
In May, there were 148 loans liquidated for a total balance of $1.38 billion. This is 11% higher than April, which had 175 loans that resulted in a loss of $1.24 billion.
The losses on the May liquidations were about $594 million, representing an average loss severity of 43.2%. In April, the losses were $100 million less than May and average loss severity was slightly below 40%.
Over the last 17 months, the average loss severity for these loans was 41.5%. Trepp said that special servicers have been liquidating at a rate of about $949 million a month during this time, so the $1.38 billion in May represents an “above average” reading.
The May total is the second highest value since the CMBS information provider started tracking these loans in January 2010. Only January 2011 had a higher total at $1.5 billion.
