Defaults on European commercial mortgage-backed securities (CMBS) hit a record high in April as 12 new loans became delinquent in the period, according to rating agency Standard & Poor's. This is the highest monthly number since S&P started covering the market in 2008.
Defaults on European commercial mortgage-backed securities (CMBS) hit a record high in April as 12 new loans became delinquent in the period, according to rating agency Standard & Poor's. This is the highest monthly number since S&P started covering the market in 2008.
The same number of loans went into special servicing, also representing a new high for monthly increases. Servicers transferred three loans out of special servicing in April and two of these were resolved at a loss, S&P said in a statement.
Recent sales of assets backing other loans, such as the SQY Quest loan in Titan Europe 2006-3 PLC, point to more potential note losses to come. For the SQY Quest loan, the loss is likely to be about EUR 80 mln, it added.
At the note level, there have been redemptions across five transactions over the past month.
'April's loan maturity statistics reinforce the trend toward extension or default, rather than repayment, in European CMBS loans,' S&P said.
