Boston-based loan sale advisor DebtX said a modest tightening of whole loan spreads caused prices on auctioned commercial loans to rise in January.
The aggregate value of commercial real estate (CRE) loans priced by DebtX that collateralize CMBS increased to 76.7 percent as of Jan. 29, up from 75.9 percent as of Dec. 31, 2009. Loan values are down from 81.3 percent compared to January 2009.
"Loan prices rose in January due primarily to the downward shift of the treasury yield curve and a modest tightening of whole loan spreads," said DebtX CEO Kingsley Greenland. "These improvements in the capital markets were partially offset by weak commercial real estate fundamentals."
DebtX priced 59,759 commercial real estate loans as of Jan. 29, with an aggregate principal balance of $700.2 billion. DebtX’s valuations are based on actual secondary market sales of CRE loans that take place at DebtX, according to a statement.