DebtX: Commercial Real Estate Loan Prices Grew Strongly in 2012

Impaired Performing and Non-performing Loans Were Flat in Final Month of 2012

BOSTON--(BUSINESS WIRE)--Prices for Commercial Real Estate (CRE) loans sold through DebtX grew strongly in 2012, but closed the year flat, according to DebtXData℠, the proprietary analytics platform from DebtX, the largest marketplace for loans.

“In 2012, prices for impaired performing loans rose 9.1 percentage points and prices for non-performing loans rose 11.5 percentage points”

“In 2012, prices for impaired performing loans rose 9.1 percentage points and prices for non-performing loans rose 11.5 percentage points,” said DebtX Managing Director Will Mercer. “2012 was a very strong year in the CRE secondary loan market.”

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 www.debtx.com, the most liquid exchange for whole loans.

DebtXData reported the following for December 2012:

• CMBS loan pricing. The estimated price of whole loans securing the US CMBS universe decreased to 89.0% as of December 31, 2012 from 89.4% in November 30, 2012. Loan values were 86.1% on December 31, 2011.
• Impaired performing loan prices. The weighted average monthly price of impaired performing loans sold through DebtX’s marketplace remained unchanged at 80.5% as of December 2012. Prices were 71.3% in December 2011.

• Non-performing loan prices. The weighted average monthly price of non-performing CRE loans sold through DebtX’s marketplace was 52.6% in December 2012, up from 52.2% in November 2012. Prices were 41.1% in December 2011.

• Marketplace liquidity. The Loan Liquidity Index, a monthly barometer of liquidity for pools of loans sold at DebtX, was 108.2, down from 108.4 in November 2012. The Index was 94.9 in December 2011.

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About DebtX

DebtX operates the world’s most liquid marketplace for loans. Through its loan sale advisory and valuation and analytics services, DebtX maximizes loan sale proceeds for financial institutions and government agencies. For syndication, agency, and loan sale professionals, DebtX provides a suite of web-based deal management solutions. DebtX is based in Boston, with offices across the U.S. and Europe. Call +1.617.531.3400 or visit www.debtx.com. Follow DebtX on Facebook, Twitter and LinkedIn.