The largest marketplace for loans, DebtX, has announced that they have seen an increased in commercial real estate loans under the Commercial-Mortgage Backed Security (CMBS) in November.
According to the press release of DebtX in PR Newswire, the debt-exchange company had priced $896 billion in commercial real estate loans that collateralize U.S. CMBS trusts, up from $885 billion in October, the second successive monthly increase. The approximate price of whole loans securing this space increased to 97.6 percent at the end of November from 97.4 percent at the end of October. Prices were 99.1 percent in November 2014.
"CMBS loan prices gained in November, but edged down year-over-year," said DebtX Managing Director, Will Mercer. "The monthly increase can be attributed to a rise in the Treasury yield curve and a small increase in credit spreads."
Median adjusted loan-to-value hang about 57 percent in November and the median debt service coverage ratio also linger at 1.46, while the median estimated loan yield has rose slightly to 4.5 percent.
DebtX is a Boston-based debt-exchange company and was founded in 2000. DebtX has been operating the world's most liquid marketplace for loans since then. The company developed and deployed the first online loan sale platform that enabled millions of imaged documents to be accessed virtually through a secure document sharing application.
DebtX's proprietary loan sale and compliance platform as well as it loan valuation and credit scoring processes have been audited for security and are used by many of the world's most sophisticated private and government financial institutions.
The company also provides third-party loan valuation services for both public and private clients, as well as analytics and data based on over a decade of secondary market loan sales at DebtX.
Banks and insurance companies, under inspection by regulators and auditors, are known to use DebtX's products to give explanation for internal Fair Value pricing methodology and answer detailed inquiries around FAS 157 Level 3 disclosures.
