CMBS Loan Prices Down in July

CMBS Loan Prices Down in July

August 27, 2018
The level of commercial and multifamily mortgage debt outstanding hit $3.39 trillion by the end of 2018
Prices of commercial real estate loans underlying commercial mortgage-backed securities (CMBS) were down slightly in July, according to new data from DebtX.
The estimated price of whole loans securing the CMBS sector dropped from 96.5 percent in June to 96.2 percent in July. By the end of last month, DebtX priced $1.22 trillion in commercial real estate loans that collateralize CMBS trusts, adding that the median adjusted loan-to-value remained at 58 percent while the median debt service coverage ratio was unchanged at 1.52. The median estimated loan yields rose to 4.7 percent.
“The modest decline in loan prices in the CMBS universe in July can be primarily attributed to changes in the yield curve rather than credit quality,” said DebtX Managing Director Will Mercer.