Valuations of performing commercial real estate (CRE) whole loans in legacy CMBS trusts improved over the month of February, according to data from DebtX.
The estimated value of loans securing the U.S. CMBS universe increased to 89.8% as of Feb. 28, 2013 from 89.2% as of Jan. 31, 2013, according to DebtX’s DebtXData. Loan values were 86.9% on Feb. 29, 2012.
Debt X offers its valuation service each month on over 52,000 CRE loans that collateralize more than 820 US CMBS trusts. Since 2012 has monitored the steady improvement in values of these individual CRE loans that make up securitization pools.
The long term trend for CMBS valuations has seen a steady increase over the past year.
DebtX managing director, Will Mercer said that in the last few months -- since Q4 2012 and continuing through this year -- the active new origination market has translated directly into really high quality loans coming through the secondary market. There is a lot of buyside competition for these loans. “Highly competitive pricing for new originations is moving up through the secondary markets, and the hunt for yield in the capital markets continues unabated,” Mercer said in a press release.