Delinquencies for CDOs backed by commercial real estate (CRE) loans continued to climb in September, Fitch Ratings said Friday.
Loan delinquencies in CDOs for September were 12.9%, with 19 new delinquent assets reported, up from 12.1% in August.
Director Stacey McGovern said in a press release that loans secured by office and multifamily properties represented over 70% of all new delinquencies.
Among the September delinquencies were eight term defaults, seven matured balloons and four credit impaired securities.
In September, 34 of 35 Fitch rated CRE CDOS reported delinquencies ranging from 1% to 41.3%.
Asset managers reported over $70 million in realized losses from the disposal of distressed assets in September. Total realized losses across the CRE CDO universe total over $1.6 billion, or approximately 7% of the collateral balance.