Los Angeles – April 30, 2018 – According to the CBRE Q1 2018 U.S. Lending Report, lending markets remain strong, despite recent market volatility. Real estate capital markets remained in good shape, with healthy loan production volumes and favorable credit spreads for borrowers. As investors anticipate additional short-term rate increases by the Federal Reserve this year, the yield curve has begun to flatten. By mid-April, the spread between ten-year and two-year Treasury bonds was at the tightest level since before the 2008 recession. Through February, combined Fannie Mae and Freddie Mac multifamily loan purchase volume of $15.6 billion was below the record-setting pace of $20.6 billion at the same time last year. For all loans tracked by CBRE the percentage of loans carrying interest-only terms remained at 66% in Q1, and there has been no substantial deterioration in underwriting measure over the past few quarters. The average LTV fell slightly in Q1 to 59.8% for commercial properties and 68.3% for multifamily. The average debt yield and constant across all property types was 9.36% and 5.89%, respectively. The full report is available upon request.
Los Angeles – March 31, 2018 – Spreads for CML transactions have experienced their own version of March Madness. A growing segment of the life company market has been chasing low to moderate leveraged transactions (60% leverage or less) and cutting their spreads in the process. Given the current treasury yield environment, spreads have dipped to the low 100’s for low leverage transactions. Even some modestly leveraged loans rated CM 2 for Risk Based Capital (RBC) are getting priced in this range by a number of life companies. A smaller segment of the life company market maintains a higher yield target and are willing to increase leverage, offer a longer amortization schedule, provide more flexible prepayment structures, and/or lend in secondary and tertiary markets. Spreads for these transactions range from the 140-190 basis points and are often CM2 rated loans. Agency spreads have widened for the second consecutive month, gapping 6-12 basis points over the past 30 days. This should provide life company lenders an opportunity to compete more effectively in the multifamily space. Most life companies have a positive outlook for the multifamily asset class and have CML portfolios that are underweighted in this product type.
Paul Tyler, Nassau Re’s chief marking officer, talks about boosting insurance innovation in Hartford with the newly formed insurtech accelerator. Hartford InsurTech Hub opened in January, driven by Startupbootcamp, a Danish firm the operates accelerators in several industries.
“Paul Tyler moved to Hartford, Conn., in 2016 as chief marketing officer for Phoenix Life Insurance. Hartford has long been an insurance hub, and Tyler was eager to learn how the industry was responding to changes in consumers’ buying habits.
““When I arrived in Hartford, I was thinking, wow, there’s got to be a lot of stuff going on,’’ Tyler says. “I started reaching out to a lot of people to see what was happening, and it was very, very quiet, just kind of waiting for somebody to throw a match.”
ThinkAdvisor reports on our first new annuity introduced since the Nassau Re acquisition, NassauMYAnnuity (5X, 7X).
The product is a single-premium, multi-year guarantee annuity. The annuity pays a guaranteed rate of interest, and a purchaser can choose between a 5-year or 7-year guarantee period. The current rate is 3.4% for the 5X version of the annuity and 3.5% for the 7X version.
Hartford, CT, March 20, 2018 – Nassau Re today announced it has added a single-premium multi-year guarantee annuity (MYGA) to its insurance offerings, Nassau MYAnnuitySM (5X, 7X). It is the first new insurance product offering from Phoenix since its acquisition in 2016, and it launches a renewed emphasis on innovative products focused on strong consumer value and choice through Nassau Re’s insurance segment. Nassau MYAnnuity is available through independent marketing organizations (IMOs).