Commercial loan prices jump in October

Commercial loans experienced a price increase.

Property management companies may have experienced loan price hikes, as the level of commercial real estate loan prices increased last month.

A report from DataX showed that the level of marketplace liquidity, showed in the Loan Liquidity Index, dropped to a level of 108.4 in October. The previous month's figure was 109.5. However, this was far higher than the year-ago figure of 93.6.

Non-performing loan prices rose to 51.9 percent, slightly higher than the previous month's level of 50.9 percent, as well as the figure in October 2011, which was 40.3 percent, the report showed. Impaired performing loan prices rose to 79.4 percent from September's level of 78 percent.

"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 DebtX. "Non-performing and impaired performing CRE loans are up strongly from a year ago."

Commercial mortgage-backed securities experienced a price increase to 88.9 percent in October, the report added. The previous month's figure was 88.7 percent.

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