Jan 18 - Though a decline since last month, late-pays for U.S. CREL CDOs finished the year higher than at year-end 2011, according to the latest index results from Fitch Ratings.
CREL CDO delinquencies for December came in at 13.4%, down from 13.7% in November. However, they are higher than the 12.5% observed in December 2011. The historical high-water mark for CREL CDO delinquencies remains 14.8% in April 2011.
As of year-end 2012, only two Fitch rated CREL CDOs were still in their reinvestment periods, both of which are currently failing overcollateralization (OC) tests. Total CREL CDO collateral is down by $2.9 billion since 2011.
Loans secured by land remained the property type with the highest delinquency rate at 43% to close out 2012. However, hotel loans now have the second highest delinquency rate at 20%. The most significant decline is attributable to multifamily properties, which have dropped to a 7% delinquency rate from 14% in 2011.
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