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Life Companies’ Commercial Mortgage Investments Post Modest Q3 Returns
Commercial mortgage investments held by life insurance companies posted a modest total return of 0.63% in the third quarter of 2021, Trepp reported. The modest return represented in the firm’s latest LifeComps report is attributed to a decline in reported loan values of -0.37%.
“Economic growth expectations have been hindered as short-term inflation has become a long-term concern,” said data analyst Jennifer Dimaano. “The Fed remained dovish on inflation and maintained a “wait-and-see” attitude in the third quarter.”
Treasury yields have been on a steady decline, dropping by 22 basis points in Q3. Interest rates remain low, and demand for goods continues to surge despite supply chain chokeholds.
Adding to supply chain woes, labor market shortages in Q3 created a demand for workers, especially in the hospitality space, Trepp reported. Accordingly, properties that would normally have hospitality workers saw the highest returns in the LifeComps portfolio in Q3.
- ◦Financing
