DebtX: CMBS Loan Prices Dipped Slightly In July

DebtX, which provides third-party loan valuation services for both public and private clients, reports that prices of loans underlying the commercial mortgage-backed securities (CMBS) universe retreated slightly in July.

‘CMBS prices in July gave up their modest gains from the prior month,’ says Will Mercer, managing director for DebtX, in a release. ‘Prices are basically flat for the summer thus far, but still up year over year.’

As of the end of July, DebtX had priced $864 billion in commercial real estate loans that collateralize U.S. CMBS trusts. The estimated price of whole loans securing this universe decreased to 95.6% at the end of July, from 95.9% at the end of June. Prices were 90.7% in July 2013.

Median adjusted loan-to-values decreased to 59%, while median debt service coverage ratios remained at 1.41. Median estimated loan yields increased to 4.5%.


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