DebtX, the largest marketplace for loans, said today that prices of loans underlying the commercial mortgage-backed securities (CMBS) universe retreated slightly in July.
“CMBS prices in July gave up their modest gains from the prior month,” said DebtX Managing Director Will Mercer. “Prices are basically flat for the summer thus far, but still up year-over-year.”
At the end of July, DebtX had priced $864 billion in commercial real estate loans that collateralize US CMBS trusts. The estimated price of whole loans securing this universe decreased to 95.6% at the end of July from 95.9% at the end of June. Prices were 90.7% in July 2013.
Median adjusted loan-to-values in July decreased to 59%, while median debt service coverage ratios have remained at 1.41. Median estimated loan yields have increased to 4.5%.
DebtX operates the world’s most liquid marketplace for loans. Through its loan sale advisory, DebtX maximizes loan sale proceeds for financial institutions and government agencies. DebtX also provides loan valuation, analytics and market data for regulatory and audit purposes.