A new report on Japanese CMBS shows that nine of the loans backing Moody's-rated transactions, amounting to Y124.2bn, were paid down or matured during March 2010. One (accounting for Y8.2bn) was paid down in full by its maturity date, five (Y7.1bn) defaulted and three (Y108.9bn) had their maturities extended.

Three of the defaulted loans (Y24.4bn) had been resolved in March. At the end of the month, defaulting loans amounted to Y271.7bn, down approximately 6% from February.

Five defaulting loans (Y32.5bn) were recovered between January and March 2010. Ten defaulting loans in total were recovered in 2009.

Moody's says the actual numbers for January to March 2010 indicates that special servicing activities for defaulting loans had intensified compared with the previous year. Three of the five defaulting loans were recovered fully, while the remaining two were partially recovered and had incurred losses on their remaining principal balances. The recovery rate per defaulting loan averaged 79% and the duration of the collection periods averaged approximately 11 months.