The U.S. CMBS default rate jumped to 12.9% at the end of the second quarter of 2011, marking a 228 basis point increase since the end of 2010, according to Fitch Ratings.

“Highly leveraged loans from recent vintage CMBS are also still defaulting at an elevated rate,’ said Fitch Managing Director Mary MacNeill.  

The report noted that the default rate for each vintage from 2005-2008 spiked over 200 basis points since the end of 2010, with 2007 gaining the most with a 549 basis point jump. The largest four newly defaulted loans were originated in 2007, Fitch stated.

New defaults have declined this year, dropping 59% from 1Q11 to $4 billion. The rating agency said $9.95 billion in new fixed rate conduit CMBS has been rated by Fitch in 2011.

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