Observers have noted the conduit market is more interest-rate sensitive than other funding sources for commercial and multifamily loans.
As of July 31, the estimate price of whole loans securing CMBS was 90.7%. DebtX managing director Will Mercer commented that during the month “there was some continued improvement in loan-to-value ratios, but it was offset by a small, upward shift in the Treasury yield curve.
In June, whole loan prices for CMBS was 90.8%.
“The secondary loan market remains active and little changed in terms of price. Loan values are essentially right where they were a year ago,” Mercer said.
The Loan Liquidity Index was 97.9, up from 96.4% in June but down from 111.7 in July 2012.
On July 31, 2012, the value of loans securing CMBS was 88.1%.
DebtX added that the price of impaired performing loans improved by seven bps, to 78.2% from 77.5% in June; in July 2012, it was 77.6%.
Nonperforming CRE loans traded on DebtX’s marketplace for July was 50.9%, down two bps from June, but up 10 bps on a year-over-year basis.