Monday, April 30, 2012

Fitch: CMBS Servicer Data Show Importance of Size, Location via MarketWatch

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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