Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Wednesday, 13 July 2016

Life Insurers Saw 7.7 Percent Hike in Mortgage Portfolios Last Year

Life insurance companies tracked by Fitch Ratings increased the holdings of mortgages in their general accounts by $25.7 billion, or 7.7 percent last year, to $360 billion. They also increased their allocation to the mortgage sector to 12.4 percent of invested assets from 11.6 percent in 2014.

Commercial Real Estate Direct Staff Report

Life insurance companies tracked by Fitch Ratings increased the holdings of mortgages in their general accounts by $25.7 billion, or 7.7 percent last year, to $360 billion. They also increased their allocation to the mortgage sector to 12.4 percent of invested assets from 11.6 percent in 2014.

Their mortgage holdings are dominated by commercial and multifamily mortgages, which comprise 87.5 percent, or $315 billion of their mortgage holdings. The remainder are a mix of agricultural, construction, single-family and mezzanine loans.

Fitch noted that last year's 7.7 percent growth rate compares with growth rates of 6 percent and 7 percent during the prior two years.

While the rating agency's coverage of the life insurance industry isn't comprehensive, it's very substantial. The Mortgage Bankers Association earlier this year had reported that life companies' holdings of commercial mortgages had grown by $28.6 billion, or 8 percent.

The growth rate in insurers' portfolios is a net figure. Life companies last year originated $78.8 billion, according to the MBA. So, $50.2 billion of their originations went to replace loans that had burned off.

Meanwhile, Fitch found that the life companies it tracks had reduced their holdings of CMBS by 5.5 percent, to $111.8...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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