DebtX: Prices Increase for Non-Performing, Impaired Performing Loans
By: Carrie Bay
Prices for non-performing and impaired performing commercial real estate (CRE) loans climbed higher in October, according to DebtXData, the proprietary analytics platform from DebtX, a marketplace exchange for whole loans.
“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 Will Mercer, managing director for Boston-based DebtX. “Non-performing and impaired performing CRE loans are up strongly from a year ago.”
DebtXData offers historical and current CRE loan prices, a quantitative measure of secondary market liquidity, new origination spreads, market commentary, and analysis of selected trades transacted at DebtX.com.
As of October 31, 2012, DebtX priced 54,825 CRE loans with an aggregate principal balance of $765.5 billion. Estimated pricing increased to 88.9 percent in October, up from 88.7 percent in September. Loan values were 85.3 percent in October 2011.
The weighted average monthly price of impaired performing loans traded at DebtX’s marketplace was 79.4 percent during the month of October. That’s up from 78 percent in September and 70.8 percent in October 2011.
The weighted average monthly price of non-performing CRE loans traded at DebtX’s marketplace was 51.9 percent in October, compared to 50.9 percent the month before. Prices were 40.3 percent a year earlier.
The company’s Loan Liquidity Index, a monthly barometer of liquidity for pools of loans sold at DebtX, was 108.4, down from 109.5 in September but up from 93.6 in October of last year.
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