DebtX, which provides third-party loan valuation services for both public and private clients, reports that the price of commercial real estate (CRE) loans underlying the commercial mortgage-backed securities (CMBS) universe declined slightly in April.
‘CMBS loan prices were down a few ticks in April, but the market fundamentals are still in place,’ says Will Mercer, DebtX's managing director. ‘Loan-to-value and debt service coverage metrics both continued to improve, despite a very competitive lending market.’
As of the end of April, DebtX had priced $876 billion in CRE loans that collateralize U.S. CMBS trusts. The estimated price of whole loans securing this universe decreased to 99.3% at the end of April, down from the 99.6% at the end of March. Prices were 95.2% in March 2014.
Median adjusted loan-to-value decreased to 57% for the month, and median debt service coverage ratio increased to 1.44. The median estimated loan yield remained at 4.1%.