CMBS Loans Show Record Distress By One Metric: Structured Weekly

Landlords have restructured more than 10% of commercial mortgage debt bundled into bonds, often after defaulting on the loans, a record percentage that exceeds even levels during the 2008 financial crisis, according to data analyzed by JPMorgan Chase & Co.

The modifications that borrowers sought — for example lower payments that may stretch on for longer — can only help so much, JPMorgan strategists including Chong Sin wrote in a June 28 note. After the financial crisis, many loans that were modified simply defaulted again, often years later, the strategists wrote.

The high levels of loan modifications, given to borrowers ...