Oct 26 - Fitch's U.S. CMBS cumulative default rate for fixed-rate CMBS increased slightly to
13.5% at third-quarter 2012 (3Q'12) from 13.2% at 2Q'12.
Newly defaulted loans for 3Q'12 totaled $2.2 billion (119 loans). This is comparable to
2Q'12, when 119 loans totaling $2.1 billion defaulted. Also helping to stabilize CMBS default
rates is the pace of new issuance, which increased almost three-fold compared to the start of
this year ($6.2 billion last quarter, compared to $2.1 in 1Q'12).
Office clearly leads new defaults for 2012 at over 50%, with 43 loans totaling $1.4 billion
becoming delinquent for the first time this quarter. However, the office cumulative default rate
still trails the other main property types.
Three newly defaulted loans were greater than $100 million:
--One Skyline Tower, $678 million office, VA; BACM 2007-1, JPM 2007-LDP10, GE 2007-C1;
--Colony IV Portfolio B, $171 million office/industrial in six states; JPM 2006-LDP9;
--Koger Center, $116 million office, FL; CSMC 2007-C1.
Additional information including a breakdown of 1Q'12 and cumulative defaults by property
type and vintage is available in Fitch's weekly e-newsletter, 'U.S. CMBS Market Trends', which
also contains recent rating actions and an overview of newly released CMBS research, including
Fitch presales and Focus reports. The link below enables market participants to sign up to
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