Delinquencies on U.S. commercial real estate loan collateralized debt obligations (CREL CDOs) rose slightly in April to 13.9%, up from 13.6% in March, according to new data from Fitch Ratings.
New delinquent assets in April consisted of four matured balloon loan interests and two newly credit impaired commercial mortgage-backed securities bonds.
Offsetting these new delinquencies were nine assets that were removed from the Fitch Ratings index last month, including four assets disposed of at a loss, two modified/extended loans and three securities that are no longer impaired.
CREL CDO asset managers reported approximately $28 million in realized losses in April. The largest loss, which totaled $14.6 million, was a full loss on a mezzanine interest backed by a portfolio of hotel properties.
Last month, 31 of the 33 CREL CDOs rated by Fitch Ratings reported delinquencies ranging from 1.3% to 51%. Additionally, 39% of the rated CREL CDOs were failing at least one overcollateralization test.