DebtX, the largest online marketplace for commercial debt, today announced the availability of its loan pricing data to Bloomberg subscribers via the Bloomberg Professional L service, bringing a new level of transparency to the Commercial Mortgage-Backed Securities (CMBS) market.
DXMark(SM) from DebtX 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 analyze any or all of the individual loans in a CMBS issue.
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 $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 $475 million.
"Bloomberg and DebtX are delivering much-needed transparency to the CMBS market by making loan pricing data widely available," said DebtX CEO Kingsley Greenland. "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.