Prices on auctioned commercial loans improved in June because of lower treasury rates, Boston-based loan advisor DebtX said.
The aggregate value of commercial real estate (CRE) loans priced by DebtX that collateralize CMBS increased to 77.4 percent as of June 30, up from 76.6 percent as of May 28. Loan values were 76 percent as of June 30, 2009.
"Commercial real estate fundamentals continue to deteriorate and are constraining CMBS loan price increases gained through lower treasury rates," said DebtX CEO Kingsley Greenland. "Several key performance metrics continue to weigh on the CMBS market, including record high delinquency rates, the increased volume of loans being transferred to special servicers and the low rate of balloon repayments at maturity."
In June, DebtX priced 58,232 CRE loans with a $683.9 billion aggregate principal balance. The loans collateralize 628 U.S. CMBS trusts, according to DebtX.





