The value of commercial real estate (CRE) loans that collateralize commercial mortgage-backed securities (CMBS) priced by DebtX rose to 77.4% at the end of June from 76.6% in May, the loan-sale adviser said in a press release Tuesday. DebtX said monthly values continue to increase and are up from 76.4% for April and 75.9% in March. The Boston-based company priced 58,232 CRE loans with an aggregate principal balance $683.9bn in June. The loans collateralize 628 domestic CMBS trusts. “Commercial real estate fundamentals continue to deteriorate and are constraining CMBS loan price increases gained through lower treasury rates,” said DebtX CEO Kingsley Greenland. “Several key performance metrics continue to weigh on the CMBS market, including record high delinquency rates, the increased volume of loans being transferred to special servicers and the low rate of balloon repayments at maturity.” Write to Jason Philyaw.
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