“In the fourth quarter, the market saw positive news of a possible economic “soft landing,” with strong signs from the labor market as well as indications of disinflation,” said Benqing Shen Director of Product Management at Trepp and report author.
NEW YORK (PRWEB) February 28, 2023
Trepp, a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets has released the fourth quarter 2022 returns report for its life insurance commercial mortgage index. Instantly download the report here: https://www.trepp.com/instantly-access-q4-2022-life-comps-report
The LifeComps total return index saw an annual rate of -10.1%, with appreciation return being the primary contributor at -14.3%. This is down from the third quarter of 2022 when the total return index was -4.07%. However, things might be looking up because some commercial mortgage loans bottomed out in the fourth quarter. Loans saw slight improvement overall in returns with a positive return of 1.9% in Q4 2022.
Market participants may be wondering if commercial mortgage performance is turning a corner. But as stated in Trepp’s report, performance is largely dependent on the Federal Reserve’s policy.
“In the fourth quarter, the market saw positive news of a possible economic “soft landing,” with strong signs from the labor market as well as indications of disinflation,” said Benqing Shen Director of Product Management at Trepp and report author. “However, if the Fed is more hawkish than people expected at the beginning of 2023, commercial mortgage returns may be negatively impacted.”
The LifeComps Commercial Mortgage Loan Index remains the only published benchmark for CRE mortgages based on actual performance data and cash flow collected from participating life insurance companies. Access our report to see the latest findings from this historic performance index: https://www.trepp.com/instantly-access-q4-2022-life-comps-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 Loan Index is the only published benchmark for the private commercial mortgage market based on actual mortgage loan cash flow and performance data which has been collected quarterly from participating life insurance companies since 1997. LifeComps provides a quantifiable investment performance index and serves as a benchmark for privately held commercial real estate mortgages.
About Trepp
Trepp, founded in 1979, is the leading provider of data, insights, 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 efficiencies, information transparency, and investment performance. From its offices in New York and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is wholly owned by Daily Mail and General Trust (DMGT).