Prices of commercial real estate loans underlying commercial mortgage-backed securities (CMBS) declined slightly in February, according to new data from DebtX.
During the month, the estimated price of whole loans securing the CMBS universe decreased to 96.6% at the end of February from 96.7% at the end of January. Prices were 96.5% in February 2018.
“The slight decrease in loan prices in the CMBS universe in February was the result of an increase in the Treasury yield curve,” said DebtX Managing Director Will Mercer.
As of the end of February, DebtX priced $1.3 trillion in commercial real estate loans that collateralize U.S. CMBS trusts. From last month, the median adjusted loan-to-value remained at 57%, and the median debt service coverage ratio was unchanged at 1.51. The median estimated loan yields increased to 4.6%.
DebtX provides third-party loan valuation services for both public and private clients, as well as analytics and data based on nearly two decades of secondary market loan sales at DebtX.