The aggregate value of Commercial Real Estate (CRE) loans priced by DebtX that collateralize commercial mortgage-backed securities (CMBS) increased to 79.4 percent as of July 30, 2010, up from 77.4 percent as of June 30, 2010. Loan values were 71.1 percent as of July 31, 2009. "Despite weak CRE fundamentals and increasing levels of delinquencies and defaults, 90 percent of CMBS loans are still performing," said DebtX Chief Executive Officer Kingsley Greenland. "The outlook for CRE loans that collateralize CMBS continues to improve due to increased activity in the CMBS new issue market and strong demand for distressed CRE loans in the secondary market. Investors have become more comfortable that loan valuations have stabilized and are looking to achieve better risk-adjusted yields."
In July, DebtX priced 57,801 CRE loans with a $679.5 billion aggregate principal balance. These loans, which collateralize 623 US CMBS trusts, each received a DXMark, a price based on loan sales executed at DebtX, the largest marketplace for loans. Access to individual DXMark prices is available through the Bloomberg Professional Service.
DebtX's CMBS loan pricing analysis is part of DXMarket Data, a subscription service that provides loan buyers insight about transactions executed at www.debtx.com. DXMarket Data is available to registered DebtX buyers and includes seven components: Non-Performing Loan Sale Prices, Bank Watch, Secondary Loan Market Commentary, CMBS Loan Collateral Prices, Asset Valuation Spotlight, Secondary Loan Market Liquidity and CRE Capital Markets Observations.
For more information, visit www.debtx.com.