Commercial Real Estate Loan Prices Drop in December

BOSTON, Feb. 1 /PRNewswire/ -- The aggregate value of Commercial Real Estate (CRE) loans priced by DebtX that collateralize CMBS fell to 75.9% as of December 31, 2009, down from 77.7% as of November 30, 2009.

For all of 2009, loan prices declined by 5.4 percentage points from 81.3% on January 30, 2009 to 75.9% on December 31, 2009.

"Weakening commercial real estate fundamentals were a major theme of 2009," said William Looney, President of Loan Sales of DebtX. "In December, the trend of declining CRE performance, combined with rising risk-free rates and a steepening yield curve, led to another drop in US CMBS collateral prices."

DebtX priced 60,360 commercial real estate loans with an aggregate principal balance of $706 billion as of Dec. 31, 2009. Each of these loans, which collateralize 628 US CMBS trusts, received a DXMark®. DebtX's valuations are based on actual secondary market sales of CRE loans that take place at DebtX, the largest marketplace for loans.

DebtX provides valuations of individual CRE loans and portfolios. DXMark enables financial institutions to make more informed decisions about their loan portfolios. DXMark helps credit policy executives, risk managers, workout teams, and other senior executives analyze risk, validate origination prices and evaluate M&A opportunities. Commercial banks, insurance companies and government agencies are among the institutions currently using DXMark.

Access to individual DXMark prices is available through the BLOOMBERG PROFESSIONAL® Service. Type DXMK <go> for more information. To learn more, contact David Roover at 617-531-3446 or [email protected].

About DebtX

DebtX is one of the world's leading full-service loan sale advisors for commercial, consumer and specialty finance debt. DebtX operates the world's largest and most liquid online marketplace for loans, with more than 6,000 registered and approved investors and more than 300 selling institutions, including commercial banks, insurance companies, investment banks and government-sponsored enterprises. DebtX also offers DXMark®, the first objective valuation of commercial real estate portfolios based on actual secondary market loan sales. DXOpen® is a family of deal management products used by syndication and agency services professionals. DebtX is based in Boston, with U.S. offices in Atlanta, New York, and San Francisco, and European offices in London, Madrid and Frankfurt. For information, call 617-531-3400 or visit www.debtx.com.

SOURCE DebtX

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