Loan prices increase in November

Loan prices rose in November.

The price level for commercial real estate loans rose in November, which may be positive news for commercial property managers that the market is improving.

Commercial mortgage-backed securities loan pricing increased to 89.4 percent in November from the previous month's level of 88.9 percent, according to a report from DebtX. These figures were much higher than the 85.2 percent recorded in November of last year.

Non-performing loan prices fell to 51.2 percent in October, nearly 1 percentage point lower than in October, the report noted. Impaired loan prices rose by nearly the same level month-over-month.

"Most CRE loan prices rose in November due to the strengthening CRE capital markets and the downward shift in the Treasury yield curve," said Will Mercer, managing director of DebtX. "All loan categories show significant improvement year-over-year, but recent trades show a slight divergence between performing and non-performing loans."

There also was an increase in loan liquidity, as the figure improved to a mark of 108.9, the report added. This was slightly higher than the previous figure of 108.3.

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