CRE Loan Prices Dip After Five Months Of Increase

The aggregate value of commercial real estate (CRE) loans priced by DebtX that collateralize commercial mortgage-backed securities (CMBS) decreased from 81% at the end of August to 80.5% at the end of September. Loan values were 77.2% as of Sept. 30, 2009.

‘The recent trend of rising loan prices paused in September but is likely to continue due to tightening loan spreads and improving real estate conditions,’ says DebtX CEO Kingsley Greenland. "In September, however, an increase in delinquency rates and steeper yield curve impacted CMBS collateral prices."

In September, DebtX priced 56,992 CRE loans with a $667.5 billion aggregate principal balance.

SOURCE: DebtX

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