Commercial Mortgage-backed Security Loan Prices Drop For July

There was a drop of 10 basis points during July in the aggregate value of the commercial real estate loans priced by DebtX, Boston, used as collateral for securities. This was the first decline after seven months of prices rising, the company noted.

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As of July 31, the aggregate value was 88.3%, down from 88.4% at the end of June but well above the 85.3% aggregate value on July 30, 2011.

Managing director Will Mercer explained, “The price decline was primarily due to an increase in the Treasury yield curve and a slight increase in credit spreads.”

In July, DebtX priced 55,032 commercial mortgage-backed security loans with an aggregate principal balance of $769 billion, collateralizing 753 CMBS trusts.


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