1:45 pm – 2:45 pm
Insurance Company annual aggregate origination volumes typically average $50B-$70B. Yet, in 2009, during the Financial Crisis, insurers originated less than $23B in mortgages. Though a mixture of maturities, a significant amount of many insurers portfolios includes loans with 10-year loan terms. Given the limited volume of likely re-writes of 10-year maturing loans, what does 2019 have in store? Do insurance company portfolio managers remain bullish on mortgages? From where will deal volume flow? Will there be an increased appetite for higher yield driven product in lease-up loans, bridge loans, and construction loans? Are there any market or product types looking more favorable than others? On the capital side, will insurers’ separate accounts remain active? With the 10-year treasury hovering in the high 2’s/low 3’s, and in comparison, to corporate bonds, is there any pressure on spreads to widen, or will the competitive landscape keep spreads range bound?