DebtX, a provider of 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 modestly in August.
‘CMBS loan prices fell slightly in August – due mostly to a slight upward shift in the treasury yield curve,’ says Will Mercer, managing director at DebtX. ‘A sizable increase in August spreads also contributed to the decline in prices. However, we are still seeing price gains on a year-over-year basis.’
As of the end of August, 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 98.2% at the end of August compared with 99.1% at the end of July. Prices were 96% in August 2014.
Median adjusted loan-to-value remained at 57% in August, and the median debt service coverage ratio also held at 1.45. The median estimated loan yield remained at 4.3%.