The aggregate value of commercial real estate (CRE) loans priced by Boston-based DebtX that collateralize commercial mortgage-backed securities (CMBS) fell to 75.9% as of Dec. 31, 2009 – down from 77.7% at the end of November 2009.
For all of 2009, loan prices declined by 5.4 percentage points from 81.3% on Jan. 30, 2009, to 75.9% at year end.
‘In December, the trend of declining CRE performance, combined with rising risk-free rates and a steepening yield curve, led to another drop in U.S. CMBS collateral prices," explains William Looney, president of loan sales at DebtX.
DebtX priced 60,360 commercial real estate loans with an aggregate principal balance of $706 billion as of Dec. 31, 2009. DebtX's valuations are based on actual secondary market sales of CRE loans that take place at DebtX.