DebtX: CMBS Loan Prices Remain Steady In March

BOSTON, May 5, 2014 /PRNewswire/ -- DebtX, the largest marketplace for loans, said today that price levels for loans underlying the CMBS universe were unchanged in March 2014 compared to February 2014.

 

"Prices were flat given the yield curve and consistent fundamentals, although we did see a nice year-over-year increase," said DebtX Managing Director Will Mercer. "In the secondary markets, we saw essentially the same pattern. There was no material movement in prices during the month."

 

DebtX reported the following for March 2014:

  

• CMBS loan prices. The estimated price of whole loans securing the U.S. CMBS universe remained steady at 94.7% as of March 31, 2014, with no change from February 28, 2014. Loan values were 91.4% on March 31, 2013. 

• Impaired performing loan prices. The weighted average monthly price of impaired performing loans traded at DebtX's marketplace was 78.8% in March 2014, compared to 78.9% in February 2014. Prices were 73.5% in March 2013.

• Non-performing loan prices. The weighted average monthly price of non-performing CRE loans traded at DebtX's marketplace was 46.5% in March 2014, compared to 46.2% in February 2014. Prices were 55.3% in March 2013.

Commercial real estate loan prices rose in September

Summary:  With limited supply and increasing demand, commercial mortgage prices improved in September for both performing and non-performing loans.  The values on September 30, 2013 relative to earlier values are as follows:

Performing September 2013: 91.5/100 par September 2012: 88.7/100 par

Impaired

• September 2013: 79.2/100 par
• August 2013: 79/100 par
• September 2012: 88.7/100 par

Non-performing

• September 2013: 52.8/100 par
• August 2013: 51/100 par
• September 2013: 50.9/100 par

Boston --(Boston Business Journal)--
Prices for commercial mortgages traded higher in September, while market values for non-performing and impaired CRE loans also improved, according to DebtX, a third-party provider of loan valuation services.

“CRE loans continue to sustain pricing gains from the significant rally last year,” said DebtX Managing Director Will Mercer in a statement. “We don’t see any weakening of demand from the buy side, and supply is still limited.”

The estimated price of loans backing commercial mortgage-backed securities increased to 91.5 cents on the dollar as of September 30, up from 88.7 in the year-earlier period.

Among impaired performing loan prices, the average price was 79.2 percent of face value as of September 2013, up from 79 percent in August 2013. Prices were 78 percent in September 2012.

The weighted average monthly price of non-performing CRE loans traded through DebtX’s was 52.8 percent of face value as of September 2013, up from 51 percent in August 2013. Prices were 50.9 percent in September 2012.

Meanwhile, the Loan Liquidity Index, a monthly barometer of liquidity for pools of loans sold at DebtX, was 103.4, up from 99.7 in August 2013.

http://www.bizjournals.com/boston/real_estate/2013/10/cre-loan-prices-up-in-september.html