The aggregate value of commercial real estate (CRE) loans priced by DebtX that collateralize commercial mortgage-backed securities (CMBS) increased from 77.4% at the end of June to 79.4% at the end of July.
‘Despite weak CRE fundamentals and increasing levels of delinquencies and defaults, 90 percent of CMBS loans are still performing,’ says DebtX CEO Kingsley Greenland. "The outlook for CRE loans that collateralize CMBS continues to improve due to increased activity in the CMBS new-issue market and strong demand for distressed CRE loans in the secondary market. Investors have become more comfortable that loan valuations have stabilized and are looking to achieve better risk-adjusted yields."
In July, DebtX priced 57,801 CRE loans with a $679.5 billion aggregate principal balance. The loans collateralize 623 CMBS trusts.