DebtX: CMBS Loan Prices Rose Slightly In August

Prices of loans underlying the commercial mortgage-backed securities (CMBS) universe rose slightly in August, according to third-party loan valuation services provider DebtX.

However, according to Will Mercer, managing director for DebtX, prices ‘have remained in a tight range over the summer.’

‘Small changes in the yield curve were offset by slight adjustments to spreads,’ Mercer says in a statement. ‘With fundamentals holding steady, there was no volatility in August.’

As of the end of August, DebtX had priced $857 billion in commercial real estate loans that collateralize CMBS trusts. The estimated price of whole loans securing this universe increased to 96% at the end of August – up from 95.6% at the end of July. Prices were 90.2% in August 2013.

Median adjusted loan-to-values in August have remained at 59%, while median debt service coverage ratios have remained at 1.41x. Median estimated loan yields have decreased to 4.4%.

In September, DebtX facilitated the sale of a $2.3 billion portfolio of nonperforming residential loans for the U.S. Department of Housing and Urban Development, on behalf of SEBA Professional Services.


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