DebtX: CMBS Loan Prices Continue to Improve During April

The estimated price of whole loans backing commercial mortgage-backed securities rose 60 basis points between the end of April and the end of March, according to DebtX.

CMBS loan pricing is now at 92%, compared with 91.4% on March 31 and 88.1% on April 30, 2012.

Will Mercer, DebtX managing director, said, “Prices for CMBS loans and secondary market transactions remain at or above their historic highs. The market continues to demonstrate strong technical foundations across all segments of commercial real estate finance.”

But the Loan Liquidity Index fell 50 basis points to 95.5 in April, compared with 96 in March. In April 2012, the index was 108.1. This index measures participation of capital in the secondary market.

The weighted average monthly price of impaired performing loans sold through DebtX was 80.3% in April, up slightly from March’s 80.2%. The price in April 2012 was 72.3%.

For nonperforming loans sold through the DebtX market, the weighted average monthly price during April was 53.4%, compared with 52.9% in March and 46.2% in April 2012.