Fitch Expects More Trouble for CMBS
Posted July 26, 2010
10:45AM PST
Fitch Ratings is forecasting that eight commercial mortgage backed securities loans of more than $20 million each, coming due in August, will likely default.
The loans were originated in 2005, when loan originators were routinely front loading loans with interest only periods, or in the case of the loans Fitch is targeting, making them interest only for the length of the loan.
Fitch says that of the 772 fixed-rate CMBS loans due by December, 93 loans are already in special servicing.
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