Showing posts with label DebtX. Show all posts
Showing posts with label DebtX. Show all posts

Tuesday, February 9, 2016

CMBS Loan Values Down in 2015 Due to Higher Rates

The price of the loans underlying commercial mortgage-backed securities declined 210 basis points during 2015, amid a broad rise in interest rates, according to DebtX.

The estimated price of the whole loans securing the CMBS universe was unchanged from November to December at 97.6%.

"CMBS loan prices dropped 210 basis points primarily due to a rise in interest rates across the yield curve and a widening of market spreads across all collateral types," Will Mercer, managing director of the Boston company, said in the release.

DebtX priced $900 billion of commercial real estate loans that collateralize U.S. CMBS trusts through the end of December, according to a Monday news release.

The median adjusted loan-to-value ratio increased to 58% in December, the median debt service coverage ratio increased to 1.47 and the median estimated loan yield rose to 4.6%.