LifeComps Index: Private Mortgages Gain In Q1

e commercial mortgages held by life insurance companies generated a 4.25% total return in the first quarter, boosting the 12-month total return to 13.99% from 11.1% the previous quarter, according to the LifeComps Commercial Mortgage Index. The first quarter's health performance followed gains of 2.25% in the fourth quarter, 4.57% in the third quarter and 2.25% in the second quarter of 2009. Of total return in the first quarter, 1.62% was income return and 2.63% was price return, the LifeComps index shows. The price gain was driven by narrowing mortgage spreads, which have continued their decline from highs reached at year-end 2008. Over 12 months, total return comprised 6.82% income return and 7.16% price return. Of the four major property types, office performed best over the year, with a total return of 14.79%, compared to 14.59% for apartments, 14.11% for retail and 12.91% for industrial. The LifeComps Commercial Mortgage Index is based on cashflow data that has been collected quarterly from participating life insurance companies since 1996. Active loans in the LifeComps index number 6,000, with an aggregate principal balance of approximately $80.5 billion and a market value of $78.2 billion. The weighted average duration is 3.8 years, and the average reported loan-to-value ratio its 68%. SOURCE: [link=]LifeComps


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