Generic commercial mortgage loans priced at par, with a 4% yield, and purportedly having 58% LTV and 1.44 debt service coverage....Great if you are a policymaker but completely uncompelling for investors!
DEBTX: CMBS Loan Prices Hold Firm in May
Boston, MA, July 08, 2015
DebtX, the largest
marketplace for loans, said today that prices of commercial real estate
loans underlying the CMBS universe remained steady in May.
“For
the second consecutive month, CMBS loan prices held firm, despite a
small upward shift in the yield curve,” said DebtX Managing Director Will Mercer.“Any
movement in rates was largely offset by spread adjustments. It will be
interesting to see if that correlation holds up in June’s numbers.”
As
of the end of May, DebtX had priced $880 billion in commercial real
estate loans that collateralize US CMBS trusts. The estimated price of
whole loans securing this universe was 99.3% at the end of May,
reflecting no change from 99.3% at the end of April. Prices were 95.6%
in May 2014.
Median adjusted loan-to-value increased to 58% in
April and median debt service coverage ratio remained at 1.44. Median
estimated loan yield remained at 4.1%.