Fitch Ratings' U.S. commercial mortgage-backed securities (CMBS) cumulative default rate for its fixed-rate conduit universe stands at 9.48% as of the end of the second quarter, according to the rating agency's weekly U.S. CMBS Market Trends newsletter.
The overall cumulative default rate is on track with Fitch Ratings' expectation of 11% by the end of the year. The 2007 vintage saw the biggest increase in delinquencies this year, with a 516 basis-point movement from year-end 2009, Fitch says. The increase was driven by the addition of the $2.8 billion Stuyvesant Town/Peter Cooper Village loan in the first quarter.
Large, highly leveraged loans in later vintages are continuing to add to the increased pace of defaults, Fitch adds, explaining that 14 loans greater than $100 million have defaulted so far this year.