Trepp unveils Q3 2023 Insurance Mortgage Index: Returns dip despite rates.

Trepp has released its Q3 2023 Life Insurance Commercial Mortgage Total Return Index Report, which shows a decline in total returns due to rising interest rates. The report also highlights a decrease in total returns in the office and industrial sectors. The commercial mortgage return for the third quarter was reported to be negative 1.14%, mainly driven by price appreciation. Trepp’s report suggests that the worst may be over as the Federal Reserve is likely done with its interest rate hikes. However, market participants should remain cautious and monitor credit events and production volume. Trepp’s LifeComps Commercial Mortgage Loan Index is the only benchmark for commercial real estate mortgages based on actual performance data collected from life insurance companies since 1997.