June 14, 2024

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    Life company predictions for the second half of 2024

    Look for most of the life companies to be active during the second half of the year as they strive to meet allocations. Total 2024 life company originations will be greater than 2023, although not up to the highs seen in 2021/2022. Life company spreads have come in since the beginning of the year. Debt service coverage ratios will remain tight in the current high-interest-rate environment. Leverage could go up slightly for the strongest deals. Look for life companies to be more open to retail this year, as their portfolios are heavily weighted in multifamily and industrial. They will be aggressive on refinances with low leverage, while cautious with cash-out refinances. More