Commercial mortgage-backed securities (CMBS) loan prices have been trending upwards on a year-over-year basis, according to DebtX, a provider of third-party loan valuation services and analytics and data.
‘CMBS loan prices rose slightly in February and demonstrated solid improvement year over year,’ says Will Mercer, managing director. ‘The February increase was the result of improving loan-to-value ratios and debt service coverage, as well as fairly stable interest rates.’
DebtX says the estimated price of whole loans securing the U.S. CMBS universe increased to 94.7% as of the end of February – up slightly from 94.1% as of the end of January. Loan values were about five percentage points lower, at 89.8%, at the end of February 2013.
The weighted average monthly price of impaired performing loans traded at DebtX's marketplace was 81.4% in February – up from 79.8% in January. Prices were down a bit at 78.9% in February 2013.
The weighted average monthly price of non-performing commercial real estate loans traded at DebtX's marketplace was 49.6% in February – down from 50.5% in January. Comparatively, prices were 52.9% in February of last year.
The Loan Liquidity Index, a monthly barometer of liquidity for pools of loans sold at DebtX, was 118.2 in February – up from 114.5 in January. The Index was 109.9 in February 2013.