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 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.