DebtX: Commercial Real Estate Loan Prices Move Higher in November
Prices for Commercial Real Estate (CRE) loans that secure US CMBS and prices for impaired performing CRE loans traded at DebtX both rose in November, according to DebtXData, the proprietary analytics platform from DebtX, the marketplace for loans.
“Most CRE loan prices rose in November due to the strengthening CRE capital markets and the downward shift in the Treasury yield curve,” said DebtX Managing Director Will Mercer. “All loan categories show significant improvement year-over-year, but recent trades show a slight divergence between performing and non-performing loans.”
DebtXData offers historical and current CRE loan prices, a quantitative measure of secondary market liquidity, new origination spreads, market commentary and analysis of selected trades transacted at www.debtx.com, the most liquid exchange for whole loans.
DebtXData reported the following for November 2012:
CMBS loan pricing. The estimated price of whole loans securing the US CMBS universe increased to 89.4% as of November 30, 2012 from 88.9% as of October 31, 2012. Loan values were 85.2% on November 30, 2011.
Impaired performing loan prices. The weighted average monthly price of impaired performing loans traded at DebtX’s marketplace was 80.3% in November 2012, up from 79.4% in October 2012. Prices were 71.5% in November 2011.
Non-performing loan prices. The weighted average monthly price of non-performing CRE loans traded at DebtX’s marketplace was 51.2% in November 2012, down from 51.9% in October 2012. Prices were 40.7% in November 2011.
Marketplace liquidity. The Loan Liquidity Index, a monthly barometer of liquidity for pools of loans sold at DebtX, was 108.9, up from 108.3 in October 2012. The Index was 94.3 in November 2011.
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