DebtX: Commercial Mortgage-Backed Security Loan Prices Up in August


The estimated price of whole loans securing commercial mortgage-backed securities was 88.7% in August, up from 88.1% in July, according to DebtX, Boston. This makes eight out of the last nine months where the prices rose.

The loan value for all CMBS was 85.9% in August 2011.

DebtX’s Loan Liquidity Index, which measures the liquidity of pools sold by through its marketplace, was 110.4, down from July’s 111.7, but much improved over August 2011’s 94.8.

It also reported that the prices for impaired performing loans and nonperforming traded on DebtX improved. The impaired performing loans’ weighted average monthly price in August was 77.7%, up 10 basis points from July. The nonperforming loan weighted average price was 50.4%, up 60 basis points from July.

Will Mercer, managing director, said, “The August price increase reflects the continuing recovery in the commercial real estate capital markets and accelerating demand for loans.”

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