DebtX Reports CMBS Loan Prices Rose in May, LTVs Stand at 57%

BOSTON—DebtX, the Boston-based national marketplace for loans, reported that prices of commercial real estate loans underlying CMBS increased in May. During the month, the estimated price of whole loans securing the CMBS universe increased to 99.4% at the end of May from 97.8% at the end of April. Prices were 96.5% in May 2018.

“The increase in loan prices in the CMBS universe in May was due primarily to the rise in interest rates,” said DebtX Managing Director Will Mercer. As of the end of May, DebtX priced $1.4 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 remained at 1.5. The median estimated loan yields decreased to 4.1%.

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.

Will Mercer