CRE loan prices rise in July

BOSTON - The aggregate value of Commercial Real Estate loans priced by DebtX that collateralize CMBS increased to 79.4% as of July 30, 2010, up from 77.4% as of June 30, 2010. Loan values were 71.1% as of July 31, 2009.

"Despite weak CRE fundamentals and increasing levels of delinquencies and defaults, 90% of CMBS loans are still performing," said DebtX CEO Kingsley Greenland.

"The outlook for CRE loans that collateralize CMBS continues to improve due to increased activity in the CMBS new issue market and strong demand for distressed CRE loans in the secondary market. Investors have become more comfortable that loan valuations have stabilized and are looking to achieve better risk-adjusted yields."

In July, DebtX priced 57,801 CRE loans with a $679.5 billion aggregate principal balance. These loans, which collateralize 623 US CMBS trusts, each received a DXMark, a price based on loan sales executed at DebtX, the largest marketplace for loans.