DebtX, a provider of third-party loan valuation and analytics services for public and private clients, reports that the price of commercial real estate (CRE) loans underlying the commercial mortgage-backed securities (CMBS) universe increased slightly in July.
‘The uptick in price was due to a small improvement in loan-to-value [LTV] and slightly lower interest rates,’ says Will Mercer, managing director of DebtX.
DebtX says it priced $877 billion in CRE loans that collateralize U.S. CMBS trusts by the end of July. The estimated price of whole loans securing this universe increased to 99.1% at the end of July compared to 98.6% at the end of June. Prices were 95.6% in July 2014.
Median adjusted LTV decreased to 57% in July, while the median debt service coverage ratio increased to 1.45. The median estimated loan yield remained at 4.3%.