Wow, 9 out of 10.
That’s a lot right?
9 Out Of 10 Maturing Office CMBS Loans Defaulted In September
From the first article
Some 88.9% of CMBS loans associated with office properties defaulted at their maturity in September, while 11.1% were paid off during the month and none were extended or modified, according to Moody’s Analytics.
Defaulting office loans in September totaled $672M, with $83.7M of maturing loans paid off. September was by far the highest percentage and dollar total for office defaults in a single month this year, well above the previous high-water mark seen in April, when 51.1% of loans due defaulted, totaling $167.2M.
From the beginning of the year through Sept. 30, outcomes for maturing CMBS office loans have been more varied, with
34.1% defaulting,
34.7% being modified or extended, and
31.2% being paid off. . . .
So throughout this (tough) year on average 31.2% of maturing CMBS loans defaulted each month. That is already pretty darn high, but in September 88.9% defaulted.
Let’s hope THAT does not continue.
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History repeats
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Bestest economy ever!!!
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I had to look up the acronym.
For those who also do not know what they are:
What is the difference between a mortgage and a CMBS?
Commercial mortgage-backed securities (CMBS) are a type of mortgage-backed security backed by commercial and multifamily mortgages rather than residential real estate.
What are CMBS lenders?
Commercial mortgage-backed security (CMBS) loans are a type of popular commercial real estate loan secured by a first-position mortgage for properties such as warehouses, offices, apartments, hotels, shopping centers, and retail buildings. They are offered by conduit lenders, as well as investment and commercial banks.
correct. thank you
Most of us are familiar with “MBS” (from the great crash in 2007).
CMBS are the commercial property version.
