Monday, June 17, 2013

First AJ Loss - CSFB 2005-C2

The winner is CSFB 2005-C2, with the first ever AJ-used-to-be-a-Triple-A loss as a result of a $124mm loss on the $135mm Tri-County Mall. The loan actually fetched $31.6mm in proceeds, but also had $6.9mm of advances and $9.9mm of ASERs to pay back resulting a 91.5% loss severity. The B, C, D, F, and G bonds were completely wiped out, and the AJ took a 5% loss.

This certainly won't be the last AJ to get hit with losses. Loans continue to get worked out with more vigor, and we've also seen an increase in high loss severity workouts in recent months.


crabsofsteel said...

It hasn't shown up yet on Also of note is that our friend the Pier at Caesars (MSC 2007-HQ13) is not currently being marketed for sale.

Concrete Jungle said...

Apparently Macy's and Sears are still anchors. I was kind of surprised it wasn't a tear-down at that kind of price. It'll probably take a couple of more years for Sears to pull out (they'll be the last one standing - they just don't die), then the new owners will sell it to the city for half this price, then they'll turn it into a movie studio - oh wait, that's Eastland Mall in Charlotte /sarcasm