...New defaults fell again in 2013, hitting the lowest level since 2008. Commercial real estate (CRE) markets were stable, and healthy new issuance volume provided ample liquidity. The annual 2013 default rate was 0.9% compared with 1.2% in 2012. Fitch Ratings expects the amount of new defaults to hold steady in 2014 as the CRE market is recovering post financial crisis. Cumulative defaults, currently at 13.5%, are predicted to be relatively stable and end 2014 under 14%, based on both stable default levels and continued strong new CMBS issuance volume. Annual Defaults Down 26%: Defaults in 2013 declined for the fourth year in a row, down 26% since 2012 and 75% lower than peak levels in 2010. In total, 353 loans with a balance of $5.4 billion defaulted in 2013, compared with 557 totaling $7.3 billion in 2012 and 950 totaling $13.8 billion in 2011. New defaults were at the lowest levels since 2008, when 364 loans totaling $3.2 billion defaulted. Cumulative Defaults Stable at 13.5%: Cumulative...
