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Wednesday, 03 November 2010

Commercial Mortgage Prices Dip in September

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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


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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
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Data Digest







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




cppichart FP



CMBS 2.0 Spreads


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





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