Late payments on commerical property loans packaged into CDO's climed .7 basis points to 14.8%, and losses on commercial real estate loan collateralized debt obligations increased in April, according to Fitch Ratings.
Asset managers reported approximately $164 million in realized losses from the disposal of defaulted and credit-impaired assets, which is substantially higher than March's total of $73 million.
The agency says many of the realized losses stemmed from foreclosure or deed-in-lieu actions that wiped out subordinate positions.
The highest single loss occured when a senior lender took a deed in lieu, a volunatary dipossession, on land located near the Vegas Strip, two overlevereged B-notes, which were contributed to two related CDO's were then written down to zerio by the asset managers.
Any guesses on who owned the land, and what was planned for the property?
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