Commercial Mortgage Returns Down for Life Insurers

Commercial mortgage loans held by life insurance companies provided lower returns in the second quarter than the previous one, according to data from the LifeComps Commercial Mortgage Loan Index.

Commercial mortgages returned 2.27% in the second quarter, down from the first quarter's total return of 3.39%. Of the 2.27%, 1.17% came from income, and 1.1% was derived from price.

The price return was positive due to a downward shift in the treasury yield curve, LifeComps said.

Meanwhile, 12-month returns spiked to 7.41% from 3.73% quarter-over-quarter, due to negative performance during the second quarter of 2015 moving out of the calculation.

The highest performing sector was retail loans at 2.36%, followed by apartments at 2.3%, office at 2.24% and industrial at 1.98%.

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