Losses on commercial CDOs more than double in April
Realized losses for asset managers of U.S. commercial real estate loan collateralized debt obligations more than doubled in April, according to Fitch Ratings. Analysts said CREL CDO asset managers saw $164 million in realized losses from the disposal of defaulted and credit impaired assets in April, up from losses of $73 million a month earlier. "Many of the realized losses stemmed from foreclosure or deed-in-lieu of foreclosure actions that wiped out subordinate positions held by some CREL CDOs," said Fitch director Stacey McGovern. "The highest single loss occurred when the senior lender took a deed in lieu on land located near the Las Vegas Strip; two overleveraged B-notes, which were contributed to two related CDOs, were then written down to zero by the asset managers." During April, CREL CDO delinquencies rose to 14.8%, up from 14.1%. Write to: Kerri Panchuk.