First-Ever Commercial Mortgage Whole Loan Index Based on Actual Performance Data; LifeComps Announces New Investment Benchmark.Business Editors/Real Estate Writers BOSTON--(BUSINESS WIRE)--Dec. 9, 2003 A new index providing never before published performance data for the commercial real estate mortgage asset class was announced today by a consortium of life insurance companies. The LifeComps Commercial Mortgage Index is the first and only published benchmark for the large private commercial mortgage market based on actual historical data that enables investors to compare their commercial mortgage loan performance with the market aggregate as well as other investment asset classes. The LifeComps Index is published quarterly, 60 days after the end of each quarter, in compliance with antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. determined by counsel. Results for the third quarter 2003 show that total return for the quarter was -.581 percent comprised of 1.681 percent income and a negative price return of -2.263 percent. The weighted average duration was 4.27 years. The rolling four quarters (10/1/2002 through 9/30/2003) total return was 6.349 percent of which 7.127 percent was income and -0.779 percent price return. The negative price return is due to an increase in intermediate and short term U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. yields over the period. The LifeComps Commercial Mortgage Index was created in 1996 after five major life insurance company investors, The Equitable, John Hancock, Northwestern Mutual, Principal Financial, and Prudential Prudential is the name of two different companies and buildings named after them: Companies:
Tom Jensen, senior portfolio manager at Allstate and LifeComps chairperson chairperson Chairman The head of an academic department. See 'Chair.', Cf Chief. , explains, "The private commercial mortgage industry needs a performance index based upon actual cash flows. The LifeComps Index provides a long-term benchmark that will allow the commercial mortgage asset class to mature and be better understood by investors in commercial mortgage whole loans, as well the numerous interested parties that inquire in·quire also en·quire v. in·quired, in·quir·ing, in·quires v.intr. 1. To seek information by asking a question: inquired about prices. 2. as to the credit aspects of holding these investments." The LifeComps Commercial Mortgage Index is based on analysis of detailed accounting data on over 5,000 commercial mortgage loans with an aggregate principal balance of more than $61 billion. The data has been collected quarterly from participating life insurance companies since 1996. The Index has a two-fold purpose: 1. To provide a quantifiable Quantifiable Can be expressed as a number. The results of quantifiable psychological tests can be translated into numerical values, or scores. Mentioned in: Psychological Tests investment performance index that can be used to compare returns on life insurance company investments in private commercial real estate whole loans with those of other investment asset classes, such as public and private bonds, or equities. 2. To serve as a benchmark for privately held commercial real estate mortgages so that owners of these whole loan instruments can compare investment performance with that of a larger life insurance industry commercial mortgage portfolio. LifeComps is a not for profit venture formed by a number of life insurance companies to collect and analyze comparative commercial real estate whole loan performance data. When the real estate recession of the early 1990s began to affect delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. rates in the commercial whole loan mortgage market, institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. in those loans had no publicly available historic return data to use to anticipate potential investment losses, or to evaluate their situation against a broader measure of the asset class. In contrast, long-term performance data for competing investment asset classes such as public bond indices had been published for many years, allowing investors to understand the effects of economic cycles on those returns. In addition to the published data LifeComps participants receive detailed quarterly reports that provide total return performance for their portfolio versus the LifeComps benchmark, as well as attribution at·tri·bu·tion n. 1. The act of attributing, especially the act of establishing a particular person as the creator of a work of art. 2. by property type, region, loan size, and origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real year. LifeComps anticipates and encourages other life insurance company participation. For more information go to LifeComps web site at www.lifecomps.com. |
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