Online marketplace for commercial debt, DebtX, has signed an agreement with Bloomberg under which its loan pricing data is available to Bloomberg subscribers via the Bloomberg Professional L service.
The vendors hope this will bring a new level of transparency to the commercial mortgage-backed securities (CMBS) market. DebtX CEO Kingsley Greenland explains: “Bloomberg and DebtX are delivering much-needed transparency to the CMBS market by making loan pricing data widely available. DXMark is the first objective tool to accurately estimate the collateral in a CMBS issue. With superior information, investors and risk managers can make materially better judgments about their CMBS portfolio and ultimately improve profitability.”
According to DebtX, its DXMark solution enables investors and rating agencies to determine the underlying value of loans in a CMBS issue with greater precision by providing valuations based on competitive sales of commercial real estate (CRE) loans executed at DebtX’s online marketplace. DebtX has aggregated CRE loan pricing data from transactions involving more than 300 financial institutions and 4,000 investors.
The integration of DXMark with the data and analytics on Bloomberg allows users to more deeply analyse any or all of the individual loans in a CMBS issue, say the vendors.
Valuations of CRE loans are expressed as a percentage of par value of the loan pool and as a dollar value. For example, if the CMBS issue is based on US$500 million in CRE loans and the DXMark indicates the loans are worth 95% of par value, the valuation of the loan pool would be US$475 million.