The aggregate value of commercial real estate (CRE) loans priced by DebtX that collateralize commercial mortgage-backed securities (CMBS) increased to 76.7% as of Jan. 29, 2010 – up from 75.9% as of Dec. 31, 2009. Loan values are down 81.3% from those seen in January 2009.
‘Loan prices rose in January, due primarily to the downward shift of the Treasury yield curve and a modest tightening of whole-loan spreads,’ says DebtX CEO Kingsley Greenland. ‘These improvements in the capital markets were partially offset by weak commercial real estate fundamentals.’
DebtX priced 59,759 CRE loans with an aggregate principal balance of $700.2 billion as of the end of January. DebtX's valuations are based on actual secondary market sales of CRE loans that take place on its online marketplace.