Lenders Modified $4 Billion in US Property CLOs Last Quarter

  • More borrowers seek extensions as financing stream dries up
  • Strategy buys some time while landlords wait for a recovery
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Commercial real estate loan modifications soared in the second quarter as more borrowers sought time to repay debt in a challenging property market.

More than $4 billion of collateralized loan obligations on commercial real estate received a modification in the three-month period, compared with about $1 billion in the first quarter, DBRS Morningstar reported.