Almost $1.4 billion in commercial mortgage-backed securities (CMBS) conduit loans was resolved with losses in May, according to data released by Trepp LLC. May's figure represents an 11% increase from the April total and the second-highest value recorded by Trepp since it began tracking this data in January 2010.
Trepp recorded 148 loans with a total balance of $1.38 billion liquidated in May. In comparison, 175 loans and $1.24 billion in face amount were liquidated in April. The losses on the May liquidations were about $594 million, representing an average loss severity of 43.2%. In April, the average loss severity was just under 40%.
Trepp also determined that the May value is slightly above the average loss severity of 41.5% over the last 17 months. The special servicers have been liquidating at a rate of about $949 million per month over that time, so the $1.38 billion in liquidations this month represents an above-average reading, Trepp adds.
