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Loan Prices Drop for September

BOSTON-DebtX notes that September showed an increase in delinquency and steeper yield curve, affecting the collateral prices for CRE loans.

By Ryan Clark | Updated on November 12, 2010

BOSTON-The month of September experienced a drop in loan prices, according to data collected by DebtX. The loan sale advisors saw collateralized CMBS commercial real estate loans dip to 80.5% by September 30, 2010. The 0.5% drop from August 31, 2010 was still up in value year-over-year from 77.2%. This halts a five-month increase in prices.

“The numbers can be skewed pretty significantly by larger loans going bad. And what we had were a number of large hotel loans become distressed,” Kingsley Greenland, CEO of DebtX, tells GlobeSt.com. There were 56,992 loans with a $667.5 billion aggregate principal balance representing collateral in 620 US CMBS trusts.

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