Commercial mortgage-backed securities (CMBS) loans paying off on their balloon date have posted their second-highest reading since December 2008, according to new data from Trepp LLC.
In February, 61.6% of loans reaching their balloon date paid off. Only September 2011 had a better reading since the credit crisis began – in that month, the payoff level was 64.4%.
According to Trepp, February marks only the fourth time since late 2008 that the percentage cracked 50%. The 61.6% payoff number was almost 21 points higher than the January reading.
By loan count (as opposed to balance), 64.9% of the loans paid off. This was up over 13 points from January's reading of 51.2%. On the basis of loan count, the 12-month rolling average is now 51.7%.
Trepp notes that prior to 2008, the payoff percentages were typically well north of 70%. Since the beginning of 2009, however, there have only been four months where more than half of the balance of the loans reaching their balloon date actually paid off.