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Well when you are sleeping there is no reason for your body to release cortisol which will use up muscle instead of fat. The reason your body uses muscle as energy is because it's faster to turn muscle into working energy than fat.
Hence why you shouldn't do intense cardio for more than 45 minutes or so...your body will release cortisol because it is being stressed and your body will then begin to eat away muscle tissue.
During sleep you have a greater chance of burning fat than almost any. Your body is stress free and because of that your body produces hormones and other things that promote fat loss (night and day) like testosterone.
-jb
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