WASHINGTON, DC—The latest monthly figures from DebtX confirm what Trepp, Fitch Ratings and other industry watchers have been reporting: CMBS' fundamentals continue their upward climb.
DebX's perspective is a little different--more comprehensive one could say--than these other players, so its viewpoint is particularly telling. "We price everything in the market, not just the performing loans, and you can clearly see from our numbers that CMBS prices are mimicking the economy in general," DebtX Managing Director Will Mercer tells GlobeSt.com. "Also, there is a lot of money chasing deals so we have strong demand forces pushing the market forward as well."
All that said, in terms of the month over month progress the market did not exhibit that huge of a jump. The estimated price of whole loans securing the US CMBS universe increased to 95.2% as of April 30, 2014 from 94.7% on March 31, 2014. Loan values were 92% on April 30, 2013.
The weighted average monthly price of impaired performing loans traded at DebtX's marketplace was 78.9% in April 2014, compared to 78.8% in March 2014. Prices were 74% in April 2013.
The weighted average monthly price of non-performing CRE loans traded at DebtX's marketplace was 46.1% in April 2014, compared to 46.3% in March 2014. Prices were 55.1% in April 2013.
These numbers are significant in their historical context, Mercer says, as they are higher than they have ever been.
"If you were to look at the other fixed income asset classes it is clear with CMBS you are getting the best yield."
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