Commercial Mortgage Loans

Commercial Mortgage Loans (CML) are an important component of a longer-duration insurance asset portfolio. They are typically most appropriate for life insurers, but can be a useful allocation for P&C companies as well, depending upon key business metrics and liability structure.

CML potentially offers a yield advantage with favorable risk and capital charge characteristics. The many benefits may include:

  • Compelling relative value
  • Competitive credit loss experience, low delinquency and default rates
  • Competitive Risk Based Capital treatment
  • High current income return and support for Net Investment Income (NII)
  • Limited correlations with other asset classes and low volatility
  • Superior call protection
  • Enhanced risk-adjusted performance

Miles Capital offers our insurance clients the ability to invest in customized portfolios of high quality Senior Mortgage Loans with strong fundamental characteristics through participation or direct loan opportunities.

Miles Capital has partnered with CorAmerica to offer this service (www.coramerica.com), with offices in Los Angeles, New York, and Des Moines. CorAmerica is a real estate investment and asset management firm that focuses on commercial real estate loans and fixed income markets. The Commercial Mortgage Loan team has a long tenure in the industry across multiple market cycles, a strong correspondent system, a focus on high quality loans, and leverages a top-notch servicing platform.

Articles of Interest

For more information on Commercial Mortgage Loans or any of our other services, please contact David Cohen.