DebtX CMBS Loan Prices Increase Modestly in May

Boston, MA , July 01, 2014

DebtX, the largest marketplace for loans, said that prices of Commercial Real Estate loans underlying the CMBS universe were up modestly in May 2014 compared to April 2014.

“CMBS prices rose due to improving debt service coverage, as well as a small shift in the yield curve,” said DebtX Managing Director Will Mercer. “Prices in the secondary loan market also gained during May. Demand for all types of product continued to be as strong as we have ever seen.”

DebtX reported the following for May 2014:

• CMBS loan prices. DebtX priced $843 billion in CRE loans that collateralized US CMBS trusts at the end of May. The estimated price of whole loans securing this US CMBS universe increased to 95.6% at the end of May from 95.2% at the end of April. Prices were 91.4% in May 2013. From last month, median adjusted LTV's have remained at 60%, while median debt service coverage ratios have increased to 1.41%. Median estimated loan yields have decreased to 4.4%.

• Impaired performing loan prices. The weighted average price for impaired performing loans traded at DebtX’s marketplace in May 2014 was 79.6%.
• Non-performing loan prices. The weighted average price of non-performing CRE loans traded at DebtX’s marketplace in May 2014 was 47.5%.