CMBS Loan Losses Increase in September

Trepp reported an increase in CMBS loan losses for September, when $252.5 million across 15 loans were resolved with $139.5 million in losses total, carrying an average loss severity of 55.26% for the month. That compared to $47.2 million of loan losses in August.

The 12-month average disposed balance moved to $266.3 million, down from the $277.7 million that was seen last month, while the 12-month moving average loss severity stood at 63.54% in September, slightly up from the 63.28% seen in the prior month.

The average loss severity for loans resolved in September with losses greater than 2% increased to 58.75%, up from 55.20% in August, according to Trepp. The running average loss severity for losses greater than 2% for the last 12 months was 65.97%, up slightly from the 12-month moving average in August.

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