Prices of performing commercial real estate whole loans continued to strengthen in February, according to Boston-based DebtX.
According to DebtX, the estimated price of loans securing the U.S. commercial mortgage-backed securities (CMBS) market increased to 89.8% as of Feb. 28, from 89.2% as of Jan. 31. Loan values were 86.9% on Feb. 29, 2012.
The weighted average monthly price of impaired performing loans traded at DebtX's marketplace was 79.9% in February, down from 80% in January 2013. Prices were 71.0% in February 2012. The weighted average monthly price of non-performing loans traded at DebtX's marketplace was 52% in February, down from 52.2% in January. Prices were 43.6% in February 2012.
‘Pricing in the performing loan market remains strong, and the CMBS universe has shown particular improvement,’ says DebtX Managing Director Will Mercer. ‘Highly competitive pricing for new originations is moving up through the secondary markets, and the hunt for yield in the capital markets continues unabated.’
