May 18, 2009By Jacob Gaffney
Defaults on commercial real estate loans are rising according to Fitch Ratings, at least in the case where such loans are linked to commercial mortgage-backed securities (CMBS). What’s more, the defaults are concentrated to certain states in America, highlighting a trend of geographically related performance. Michigan is seeing the highest proportion of loans currently in default for any state, with 6.89% of all loans at least 60 days delinquent or in foreclosure, according to Fitch. 100 commercial loans in the state fit into this category at a total $501m.
