MetLife Says Commercial Mortgage Defaults Will Rise

MetLife Inc. Chief Investment Officer Steven Kandarian said commercial mortgage defaults will rise in the next two to three years after the economic slump subsides.

“The worst is to come,” Kandarian said in an interview today with Bloomberg Television in New York, where the biggest U.S. life insurer is based. “Typically there’s a lag between when the economy softens and when the defaults actually occur.”

The default rate on commercial mortgages held by U.S. banks may rise to 4.1 percent, the highest in 17 years, by year-end...

Bloomberg: MetLife Says Commercial Mortgage Defaults Will Rise