**CMBS Loan Loss Volume Rises in April, But Loss Severity Declines**
The volume of commercial mortgage-backed securities (CMBS) loan losses rose slightly in April, according to data reported by Trepp. The 12-month moving average of monthly disposed balances increased to $173.5 million, up from $171.1 million in March.
Despite the uptick in loan loss volume, the average loss severity showed a decline. April’s 12-month moving average loss severity was recorded at 61.08%, down from 62.97% in February.
In April alone, six loans with a combined balance of $134.2 million were resolved, resulting in $64.7 million in total losses. This equates to an average loss severity of 48.22%. Both the average loss severity and total losses were down compared to March, when losses totaled $157.5 million and the severity reached 81.27%.
Looking at a broader timeline, April’s figures fall on the lower end in terms of loan loss volume over the past 12 months. Even lower volumes of resolved losses were reported in August, October, and December of 2024, as well as in February 2025, when loss severity dipped slightly to 47.87%.
Pictured: Alamance Crossing in Burlington, NC. A $37.7-million CMBS loan backed by this retail center was resolved at a loss in April.
