Commercial real estate loan collateralized debt obligation delinquencies fell in May to 12.7% from
“Only three new delinquencies were reported in the month, including a matured balloon loan, a newly credit impaired security, and a credit risk mezzanine loan that was repurchased at par by the asset manager,” Fitch analysts said in the report.
The company also noted that four whole loans were modified and extended and three assets “were disposed of at significant full losses.
“All four modified and extended loans were modeled with losses in Fitch’s prior review of the respective CDOs,” Fitch noted. “That said, extensions could allow CREL CDO properties time to bring below market occupancies in line with their respective markets and stabilize property cash flows going forward.”
During the month, asset managers reported about $94 million in realized principal losses from the disposal of nine assets.
