Delinquencies for U.S. commercial real estate loan collateralized debt obligations (CREL CDOs) continued to climb this past month, according to the latest U.S. CREL CDO delinquency index results from Fitch Ratings.
Delinquencies for September rose to 12.9%, with 19 new delinquent assets reported.
‘Loans secured by office and multifamily properties represented over 70 percent of all new delinquencies,’ explains director Stacey McGovern. ‘Among the September delinquencies were eight term defaults, seven matured balloons and four credit-impaired securities.’
In September, 34 of 35 Fitch-rated CREL CDOs reported delinquencies ranging from 1% to 41.3%.
CREL CDO asset managers reported over $70 million in realized losses from the disposal of distressed assets in September. Total realized losses across the CREL CDO universe total over $1.6 billion (approximately 7% of the collateral balance).
SOURCE: Fitch Ratings