This morning I saw some CMBS news on Calculated Risk and CRE Review and followed the links to various articles. CMBS defaults are expected to peak at 12%, which is much higher than the record defaults of the late 1980s, which peaked around 6% (although the CMBS market is much larger today than in the '80s). The current default rates are at 4.71%, so a jump to 12% is big. Currently, hotels and multifamily are leading the default parade at 9.13% and 7.54%, respectively. Here is a counter intuitive post from a Reuter's blog stating that CMBS investors are set to benefit in 2010 as investors believe that their worries were overstated at year ago. I hope the poster is correct. Either way, the loans done between 2004 and 2008, and really I am thinking the loans done from mid-2005 through the end of 2007, are going to cause the most trouble. This is stating the obvious, especially since real estate prices are down 44% from their peak, according to the Reuter's blog linked to above.