The volume of commercial mortgage-backed securities (CMBS) conduit loans liquidated in February fell 43% from January's level, according to new data from Trepp LLC. The February volume is the lowest total of liquidated CMBS conduit loans since November 2010.
At $893 million, liquidations were about 32% below the 12-month moving average of $1.31 billion per month. Since the beginning of 2010, special servicers have been liquidating at an average rate of about $1.08 billion per month.
According to Trepp, February's liquidations came from 93 loans. This compares to 168 loans that were liquidated in January. The 12-month moving average is 151 loans per month.
The average loan size for liquidated loans in February was $9.6 million. Over the last 12 months, the average size of liquidated loans has been $8.7 million.
The losses from the February liquidations were about $228 million – representing an average loss severity of 25.55%, according to Trepp. This was down by over 14 points from January's 39.54% reading. February represented the lowest level since March 2011.