Trepp Releases Commercial Life Insurance Mortgage Yield Index: Mixed Economic Signals Wrap Third Quarter 2021 Yields

NEW YORK, November 29, 2021 / PRNewswire-PRWeb / – Trepp, a leading provider of data, information and technology solutions to the structured finance, commercial real estate and banking markets, released the third quarter 2021 for its commercial life insurance mortgage index. Instantly download the report here: https://www.trepp.com/instantly-access-q3-2021-lifecomps-report.

Commercial mortgage investments held by life insurance companies posted a modest total return of 0.63% in the third quarter of 2021. This modest return is attributed to a decline in reported loan values ​​of -0.37% .

“Economic growth expectations have been hampered as short-term inflation has become a long-term concern,” said Jennifer dimaano, Trepp Data Analyst. “The Fed remained accommodating on inflation and maintained a wait-and-see attitude in the third quarter.”

Yields on treasury bills are steadily declining. In the third quarter, yields fell 22 basis points after hitting a high of 174 basis points in the first quarter. Interest rates remain low and demand for goods continues to rise despite supply chain bottlenecks.

Adding to supply chain problems, labor market shortages in the third quarter created demand for workers, especially in the hotel space. Labor demand for historic minimum wage jobs has increased to attract potential candidates. Properties that would normally have hospitality employees had the highest returns in the LifeComps portfolio in the third quarter.

The quarterly variation in Q3 specific reserves increased by 11%, net of $ 13.2 million, resulting in $ 130.8 million the balance of the specific reserve while the underwriting of loans has eased.

Around 8,000 active loans are included in the LifeComps index, with an overall capital balance of $ 157 billion and rated at 166 billion dollars. The weighted average duration is 5.23 years. To view the full report, click here: https://www.trepp.com/instantly-access-q3-2021-lifecomps-report.

For more information, contact Trepp at press@trepp.com or 212.754.1010. Visit http://www.Trepp.com for more information on LifeComps.

About LifeComps ™
The LifeComps ™ Commercial Mortgage Index is the only published benchmark for the private commercial mortgage market based on actual mortgage cash flows and performance data that has been collected quarterly from insurance companies. -participants since 1966. LifeComps provides a quantifiable investment performance index and serves as a benchmark for private commercial real estate mortgages.

About Trepp
Trepp, founded in 1979, is the leading provider of data, information and technology solutions to the structured finance, commercial real estate and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiency, information transparency and investment performance. From its offices in new York, San Francisco, and London, Trepp provides products and services to its clients to support trading, research, risk management, monitoring and portfolio management. Trepp’s subsidiary, Commercial Real Estate Direct, is a daily source of information covering the commercial real estate capital markets. Trepp is 100% owned by Daily Mail and General Trust (DMGT).

Media contact

Hayley keen, Trepp, Inc., 2127541010, press@trepp.com

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SOURCE Trepp, Inc.

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