CMBS Loan Prices At Two-Year High
The prices of commercial real estate loans collateralizing commercial mortgage-backed securities rose in December to their highest levels in two years, according to DebtX ceo Kingsley Greenland. Prices of those loans rose from 85.2% of their original value in November 2011 to 86.1% in December, up from 79.4% a year earlier.
“The price increases are the result of a decline in Treasury yields, a decrease in credit spreads and improving [commercial real estate] fundamentals,” according to Greenland. The data was compiled from 51,895 CMBS loans totaling $621.5 billion in outstanding principal balance. They back 651 CMBS deals.