Prices for non-performing and impaired performing commercial real estate (CRE) loans gained in October, according to a new report from DebtX, a commercial market analytic firm.
"Loan prices rose again in October due to the continuing recovery in the CRE capital markets and steady demand for product from a broad range of investors," said DebtX Managing Director Will Mercer in a statement. "Non-performing and impaired performing CRE loans are up strongly from a year ago."
The price ration of commercial mortgage backed securities compared to the value of the underlying loans improved to 88.9 percent in October, up from 88.7 in September. Loan values were 85.3 percent in October 2011. As of October 31, 2012, DebtX priced 54,825 CRE loans with an aggregate principal balance of $765.5 billion.
Impaired but performing loans also improved their price ratio, with the weighted average monthly price of impaired performing loans traded at DebtX’s marketplace up to 79.4 percent in October, from 78 in September and 70.8 percent in October 2011.
Non-performing loan prices were also up substantially, with the weighted average monthly price of nonperforming CRE loans traded at DebtX’s marketplace was 51.9 percent in October, up from 50.9 percent in September and 40.3 percent in October 2011.





