The volume of CMBS conduit loans liquidated in January spiked sharply, jumping 51% from December's reading, according to Trepp data.
The January reading is the third highest total in the last 25 months since the CMBS data provider began tracking this number in January 2010.
January liquidations jumped to $1.58 billion, about 21% above the 12-month moving average of $1.3 billion per month. Since the beginning of 2010, the special servicers have been liquidating at an average rate of about $1.09 billion per month, Trepp noted.
However, losses from the January liquidations were the first time the loss severity number came under 40% since last April.
According to the Trepp data, January losses came in about $623 million – representing an average loss severity of 39.54% and down over 10 points from December's 49.86% reading.