Report Says CMBS Loan Prices Increased in March; Yields Decreased to 4.3%
April 30, 2019
BOSTON—DebtX, the largest marketplace for loans, released a report indicating prices of commercial real estate loans underlying CMBS rose in March.
According to a release, during the month, the estimated price of whole loans securing the CMBS universe increased to 98.2% at the end of March from 96.6% at the end of February. Prices were 96.7% in March 2018.
“The increase in loan prices in the CMBS universe in March was the result of a decrease in the Treasury yield curve,” said DebtX Managing Director, Will Mercer.
As of the end of March, 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 decreased to 1.5. The median estimated loan yields decreased to 4.3%.
Will Mercer
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