Commercial real estate CDO delinquencies rose slightly  last  month following four straight months of decline, according  to  the  latest index results from Fitch Ratings.  


CREL CDO late-pays rose to 12% from 11.6% in August. "Given the instability in the broader economy, CREL CDOs delinquencies are expected to continue to seesaw going forward," said director Stacey McGovern.

In  September, asset managers reported 11 new delinquent assets.  Among the newly  delinquent  assets  were three matured balloon loans, six new credit impaired  securities,  and  two term defaults.  

Ratings  on  the most junior classes remain subject to volatility as losses continue  to  accumulate.   In  September, CREL CDO asset managers reported approximately $60 million in realized losses.

 

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