Fitch Ratings believes higher balance commercial real estate loans are more likely to be modified than liquidated by special servicers. And A/B notes are almost exclusively used in that end of the market. Fitch also believes that the smaller volume of loans now in special servicing is a further sign of recovery in the market.
The average balance for modifications is approximately $26 million, while the average balance for loans liquidated is below $10 million. Fitch found that A/B notes were among the least often used modification type, making up just 5% of modifications in 2010 and 2011. But they have been used most often on large regionally notable buildings.
Read more...Fitch: CMBS Servicer Data Show Importance of Size, Location - MarketWatch
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