Wednesday, 22 July 2009

60 Percent of CMBS Loans Fail to Refi by Maturity

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Commercial Real Estate Direct Staff Report

About 60 percent of CMBS loans are failing to get refinanced by their maturity, according to analysis by Bank of America-Merrill Lynch.

That compares with about 15 percent to 20 percent that weren't being refinanced by their maturity last year.

BofA-Merrill analyzes maturity defaults monthly by looking at loans that had matured the previous month, three months before and six months before. It then is able to, on a monthly basis, better gauge refinancing trends. The investment bank's CMBS research team said its analysis showed a clear "trend to higher maturity defaults." And noted that conduit extensions became "very significant" during the past three months.

BofA-Merrill's conclusion is in line with that of Barclays Capital, which found that only 38 percent of June's maturities had paid off. It said that only 51 percent of the CMBS loans that had matured this year had been taken out.

Comments? E-mail Orest Mandzy or call him at (267) 247-0112, Ext. 211.

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Additional Info

  • Syndicate to Realpoint: No
  • Subject: CMBS - non-deal specific (CMBS-G), Commercial MBS (CMBS), Mortgages/Financing (MOR), Research (RES)
  • Deal Name: Bear Stearns Commercial Mortgage Securities Trust, 2006-PWR12
  • Company: Bank of America Corp., Merrill Lynch & Co.
Read 30 times Last modified on Tuesday, 22 September 2009

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