A falling yield curve and the strong demand for product contributed to an increase in CRE loan prices in August, according to debt advisor DebtX.
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The aggregate value of commercial real estate loans priced by DebtX that collateralize CMBS increased to 81% as of Aug. 31, 2010, from 79.4% as of July 30.
Loan values were 77% as of Aug. 31, 2009.
“Both positive price trends more than offset the historically high rates of loan delinquency and default among CRE borrowers,” said DebtX CEO Kingsley Greenland.
In August, DebtX priced 57,586 CRE loans with a $679.1 billion aggregate principal balance. These loans, which collateralize 626 US CMBS trusts, each received a DXMark, a price based on loan sales executed at DebtX.
