A flattening yield curve boosted prices of commercial real estate loan prices in May, according to Boston-based loan advisor DebtX.
The aggregate value of commercial real estate (CRE) loans priced by DebtX that collateralize CMBS increased to 76.6 percent as of May 28, from 76.4 percent as of April 30.
Loan values were 77.6 percent as of May 29, 2009.
"U.S. CMBS collateral prices increased again in May," said DebtX CEO Kingsley Greenland. "A flattening Treasury yield curve due to a flight to U.S. government securities more than offset a deterioration of commercial real estate fundamentals and a widening of credit spreads."
In May, DebtX priced 58,901 CRE loans with a $691 billion aggregate principal balance.





