CMBS defaults more than double

Twenty-nine commercial mortgage-backed securities defaulted in the first six months of the year as cash-strapped borrowers missed interest and principal payments, according to figures from Standard & Poor's. That compares with 12 defaults during the same period in 2012 on CMBS instruments, which package together bundles of commercial mortgage revenues for fixed income investors.

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A report by Moody's predicted that nearly 60 per cent of European CMBS loans would not repay in 2013 and that in the next five years losses in the pool of loans could hit €10bn.