The volume of CMBS conduit loans that were liquidated in February fell significantly, dropping 43% from January's reading, according to CMBS data provider Trepp.
In fact, the February reading was the lowest total since November 2010. At $893 million, liquidations were roughly 32% below the 12-month moving average of $1.31 billion per month. Starting in early 2010, the special servicers have been liquidating at a roughly $1.08 billion rate per month, Trepp said.
Last month the liquidations came from 93 loans versus 168 loans that were liquidated in January. The 12-month moving average is 151 loans every month, according to Trepp.
The data provider said that the average loan size for liquidated loans was $9.6 million in February. In the last 12 months, the average size of liquidated loans has been $8.7 million.
There were 93 loans liquidated in February. The losses from the February liquidations were approximately $228 million, which represents a loss severity average of 25.55%. This dipped by over 14 points from January's 39.54% reading. Last month represented the lowest level since March 2011, Trepp reported.
February's loss severity reading is significantly less than the average loss severity of 42.92% in the last 26 months. It is also below the 12-month 42.27% rolling average.