CREL CDO delinquencies registered their first rise since June 2012, Fitch Ratings reported this morning based on its latest index results.
"CREL CDO delinquency movement will remain volatile as the total universe of assets continues to decline," said Stacey McGovern, a director at Fitch.
October delinquencies increased to 12.2%, rising from 11.6% in September. The new delinquent assets in October comprised five matured balloon loans, four credit impaired securities as well as two term defaults.
The rating agency also said that assets that are no longer delinquent included four recently extended matured balloons, two assets disposed of at losses, and a CMBS asset that is no longer credit impaired.
In October, asset managers reported roughly $47 million in realized principal losses from the disposal of three assets, which had only marginal recoveries.
The biggest loss reported was $24 million, which is related to the writedown of a preferred equity position on a large office portfolio found throughout Southern California, Fitch stated.