Interest shortfalls in European CMBS loans continue to push note-level defaults. In September, the number of defaults pushed the 2012 total to 21, which is more than half the total number of defaults of 37 in 2011, according to a Standard & Poor’s report.
Six more classes of notes defaulted following interest shortfalls in five transactions. According to S&P’s, Oct. 2012 European CMBS monthly bulletin, two out of eight loans scheduled to mature in September, defaulted. S&P said it expects the trend will continue to add to the volume of loans in its special servicing index.