COMMERCIAL MORTGAGE ALERT, May 19, 2017: The team behind the Giliberto-Levy Commercial Mortgage Performance Index is rolling out a new measure of returns on high-yield commercial mortgages.
Mortgage banker John Levy and investment manager Michael Giliberto have begun producing a tool for gauging and comparing investment returns on mezzanine loans and other subordinate debt, including preferred equity and B-notes, along with high-yield senior mortgages.
“I can say categorically that this is the first index of its kind,” said Levy,
In a recent interview with CoStar News, John B. Levy & Company president John B. Levy discussed results of the Giliberto-Levy Commercial Mortgage Performance Index (G-L Index) for the first quarter of 2017.
With a rich, highly visual user experience, the new site makes it even easier for clients and market watchers to access the firm’s acclaimed financial indices and key financial data.
Investment banking leader John B. Levy & Company today released the results of the Giliberto-Levy Commercial Mortgage Performance Index (G-L Index) for the first quarter of 2017. The G-L Index, which tracks private-market loans held in investor portfolios, produced a 2.01 percent total return for the first quarter of 2017, regaining some value after last quarter’s -2.48 percent result.
Like Sammy Hagar trying to replace David Lee Roth as Van Halen’s lead vocalist in 1985, debt funds are seeking to fill the void left as bank lenders have dialed back their leverage levels.
What exactly are debt funds? They are non-bank lenders formed with contributed equity from institutional investors. The debt funds then leverage the contributed equity to create a pool of capital that essentially is outside typical bank regulators’ purview.
Debt funds’ ability to raise capital comes at a time when most institutional capital believes the real estate cycle is getting top-heavy and vulnerable to a correction.