Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Error
  • JUser: :_load: Unable to load user with ID: 65
Wednesday, 03 November 2010

Commercial Mortgage Prices Dip in September

Written by 
Rate this item
(0 votes)

Commercial real estate loan prices retreated slightly in September, for the first time in five months, according to DebtX.

The Boston loan-sales adviser said loan prices fell to 80.5 percent of par in September, from 81 percent in August. Loans were valued at 77.2 percent a year ago and had begun a steady increase in April. The increases have been driven by improved liquidity in the mortgage market, which has resulted in tightening loan spreads, coupled with a general decline in benchmark interest rates. In some months, those improvements have been partly offset by declining property and mortgage-sector fundamentals.

DebtX, which determines loan values by tabulating the results of actual sales of loans, said the pause in price increases was likely temporary. Value increases are "likely to continue due to tightening loan spreads and improving real estate conditions," according to Kingsley Greenland, chief executive of DebtX. He said September's pricing retreat was driven by an increase in delinquency rates. According to Realpoint, the CMBS delinquency rate was 8.039 percent in September, up from 7.932 percent a month earlier.

In September, DebtX priced 56,992 loans with a balance of $667.5 billion that back 620
CMBS transactions.

The values the company places on the loans, DXMarks, are based on actual sales in the market. DebtX markets its DXMark service to investors and institutions for their risk and portfolio management and workout needs. It is available through Bloomberg.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



Copyright © 2010 Commercial Real Estate Direct www.crenews.com

weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Subject: Commercial MBS (CMBS), Loan Offerings (LOAN), Mortgages/Financing (MOR), Research (RES)
  • Deal Name: Bear Stearns Commercial Mortgage Securities Trust, 2006-PWR12
Read 525 times

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
warehouse-backstage