"Refinancing to third parties remains difficult with nearly 90% of all new delinquencies this month considered matured balloon loans," according to a release. Overall, 67% of the CREL DI consists of this type of delinquency, the release states. While 74% of matured balloon loans continue to make monthly payments, approximately 26%--or 18% of the CREL DI--are considered non-performing with inadequate cash flow to meet debt service obligations, according to the release. In these instances, sponsors have either refused, or are unable, to infuse additional equity into the projects.

Asset managers continue to report loan extensions, according to Fitch. In line with last month's total, asset managers reported 35 new loan extensions in October, or 3% by number of loans in the CREL CDO universe.

"Borrowers continue to be challenged to meet all extension requirements by loan maturity," says Karen Trebach, a senior director with Fitch, in the release. "The increase in matured balloons this month reflects that the extension process is taking longer both to negotiate and document." Three loans, representing 25 basis points, fell out of the CREL DI as the extensions were successfully executed prior to this month's reporting cutoff date.