DebtX August CRE loan value up to 81%
The value of commercial loans priced in August by The Debt Exchange that collateralize commercial mortgage-backed securities rose to 81% of the original balance, the loan sale advisor said. DebtX priced 57,586 commercial real estate loans last month worth a combined $679.1 billion that collateralize 626 CMBS trusts. The aggregate August value is up from 79.4% in July and higher than the 77% a year earlier. "A falling yield curve and the strong demand for products contributed to an increase in CRE loan prices in August," said Kingsley Greenland, chief executive of Boston-based DebtX. "Both positive price trends more than offset the historically high rates of loan delinquency and default among borrowers." Last week, Standard & Poor's reported delinquencies for housing finance agency loans increased to 6.67% in the second quarter, which is the highest percentage the firm has seen since it started tracking such data in the second quarter of 2006. Write to Jason Philyaw.