CREL CDO Delinquencies Up In November

12927_cre_fisheye_lens CREL CDO Delinquencies Up In November U.S. commercial real estate loan collateralized debt obligations delinquencies (CREL CDOs) increased sharply in November, according to the latest index results from Fitch Ratings.

CREL CDO delinquencies increased by 1.5% last month to close at 13.7%, up from 12.2% in October. Nearly half of the new delinquencies – by loan balance – were attributed to loans backed by hotel properties, including a $70 million matured balloon mezzanine loan backed by five full service hotels located in five different states. Hotel loans lead the index at 26.4% of all delinquent assets. Â

New delinquent assets in November consisted of five matured balloon loans, five defaults, four credit impaired securities, and two foreclosures. In November, asset managers reported approximately $41 million in realized principal losses from the disposal of several assets, with the largest reported loss was a $15.7 million realized loss on a commercial mortgage-backed securities bond. The largest loss related to a loan was a $10 million write down on a mezzanine loan backed by interests in a real estate owned mall located in Milwaukee.


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