As measured by balance, nearly 90% of commercial mortgage-backed securities that came out before 2009 and are still alive suffer from interest shortfalls, according to a report released today by Fitch Ratings.

While interest shortfalls can have any number of causes, the main driver in CMBS is interest from underlying collateral that has not been advanced thanks to lower appraisal numbers. “This structured feature was introduced to limit interest advances on delinquent or defaulted loans to the extent the collateral value has declined,” the agency said.

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