DebtX, an online marketplace for commercial real estate (CRE) and specialty finance debt, reported that CRE loan prices were steady in July compared to last year.[IMAGE]
According to DebtX, the estimated price of whole loans securing the commercial mortgage-backed securities (CMBS) universe fell to 90.7 percent as of July 31, just[COLUMN_BREAK]
barely down from 90.8 percent in June. Loan values were 88.1 percent on July 31, 2012.
For impaired performing loans, the weighted average monthly price traded at DebtXÃ¢â‚¬â„¢s marketplace was 78.2 percent, up a bit from 77.5 percent in June 2013 and 77.6 percent in July 2012. The weighted average monthly price of non-performing CRE loans was 50.9 percent, down from 51.1 percent in June but up from 49.9 percent last year.
Ã¢â‚¬Å“In July, there was some continued improvement in loan-to-value ratios, but it was offset by a small upward shift in the Treasury yield curve,Ã¢â‚¬Â said DebtX managing director Will Mercer. Ã¢â‚¬Å“The secondary loan market remains active and little changed in terms of price. Loan values are essentially right where they were a year ago.Ã¢â‚¬Â
Meanwhile, DebtXÃ¢â‚¬â„¢s Loan Liquidity Index, a monthly barometer of liquidity for pools of loans sold in its marketplace, was 97.9 in July, an improvement from 96.4 in June 2013. The index was 111.7 in July 2012.