REBUSINESS Online, Jan. 2012
By Ann Hambly, founder & CEO 1st Service Solutions
From January 2009 through 2010, the CMBS default curve resembled a steep climb up Mount Everest with an approximate 90-degree incline. The default rate reached a peak of more than 12 percent of all outstanding CMBS debt — or over $80 billion — before starting a slight decline during the middle of 2011.
Amid the slight ebb in loan defaults, there was widespread speculation in the industry that maybe all the defaults were behind us and that this was a sign of a gradual recovery.
As it turns out, that perception was actually an illusion.