CMBS Class of 2007: The Smaller They Are, The Harder They Fall via CoStar Group

While the CMBS class of 2007 is full of delinquents, the creditworthiness for some of the loans made during that frothy era is actually holding up, particularly on large office deals.

This year (2012) was widely viewed as the year of reckoning for the class of 2007 originated loans as the five-year balloon loans made at the height of the commercial real estate bubble come due.

The 2007 vintage was considered the weakest in terms of underwriting standards and analysts expected that many of these loans would have trouble paying off their balances or securing refinancing at their balloon date. In total, about $15.5 billion of these loans were expected to come due this year, with the majority reaching their balloon dates in the first six months.

Read more...CMBS Class of 2007: The Smaller They Are, The Harder They Fall - CoStar Group