We’ve Hit the Halfway Point for Vintage CMBS via CoStar Group

Having just passed the five-year anniversary of the 2008 financial crisis peak, it’s a good time to review the impact of pre-crisis over-exuberance and excessive leverage on CMBS.

Total legacy U.S. CMBS 1.0 loan balances declined to $450 billion at the end of the third quarter from $825 billion at the end of 2008, as shown in Exhibit 1.1

Servicers liquidated approximately $65 billion in loans that lost a total of $28 billion over the past five years. Another $20 billion of defaulted loans either finally paid off or were liquidated with no losses. Total cumulative losses in the U.S. CMBS space have reached $32 billion, including losses sustained before the crisis.(2)

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