The balance of commercial mortgage-backed securities (CMBS) conduit loans liquidated in November reached a new high, according to data released by Trepp LLC. Last month saw liquidations from 218 loans, which was 17% higher than the previous record set in June 2011.
At $2.1 billion, November's CMBS conduit loan liquidations were 60% higher than the 12-month moving average of $1.3 billion per month. The average loan size for liquidated loans was $9.6 million in November – in comparison, the average size for liquidated loans has been $8.2 million over the last 12 months.
Trepp also determined that losses from the November liquidations were almost $1.1 billion, representing an average loss severity of 51.3%. This represented the highest reading since December 2010, when the average loss severity was 55%. The November number was up one point from October's 50.3% reading.
Separately, Trepp also released data that found that 47.1% of commercial real estate loans are paying off at their maturity date, up from October's 41.8% reading. The November level was slightly above the 12 month rolling average of 45.1%.
By loan count (as opposed to balance), Trepp found that 50% of these loans paid off last month, up almost six points from October's reading of 44.2%. On the basis of loan count, the 12-month rolling average is now 49.6%.
