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**CRE CLO Distress Rate Eases in October**
The commercial real estate collateralized loan obligation (CRE CLO) market saw its distress rate improve for the second consecutive month in October, according to data from CRED iQ. The distressed rate dropped to 10.7%—the lowest level of 2025—marking a continued recovery from earlier in the year.
In addition, the delinquency rate among CRE CLOs fell by 76 basis points during the month, settling at 8.5%. This represents a significant improvement from its peak of 12.2% recorded in February.
Despite these positive trends, the report pointed out that the special servicing rate for CRE CLOs inched up slightly to 7.3%. Furthermore, there was a notable uptick in loans that have passed their maturity dates. Non-performing matured loans jumped by 720 basis points to reach 43.0%, surpassing the volume of loans that are still current or performing despite having reached maturity. Currently, 13% of CRE CLO loans are at least 30 days past due.
On the issuance front, CRE CLO volume year-to-date through November 2025 totaled $25 billion, a significant rise from $8.7 billion over the same period in the previous year, CRED iQ reported.
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