Question-and-Answer Session
Thank you. [Operator Instructions]. Your first question comes from the line Ed Spehar with Merrill Lynch.
Eric E. Parsons - Chairman, President, and Chief Executive Officer
Hi Ed, how are you doing?
Edward Spehar - Merrill Lynch
Good, how are you?
Eric E. Parsons - Chairman, President, and Chief Executive Officer
Great, thanks.
Edward Spehar - Merrill Lynch
I have a couple of questions on real estate. I guess, the first would be, do you have any numbers on what the LTV was of the portfolio going into the last downturn in the early 90s?
Kim W. Ledbetter - Senior Vice President
Hi, Ed. No, I don't think we have that number with us here today.
Edward Spehar - Merrill Lynch
Okay.
Kim W. Ledbetter - Senior Vice President
I wouldn't expect that would have changed very much overtime from what it is now, because we maintain the same underwriting standards and generally approached the underwriting of our loans the same way. So the portfolio was much smaller back then, but I don't expect it would been much different.
Edward Spehar - Merrill Lynch
Okay. Then just to maybe a little clarity on the lost commentary during the last recession, say, you said that there was no significant loss. Do you have any numbers on what kind of losses you have, let's say relative to the size of the portfolio in the early 90s on a basis points. I mean, I know its small, but I'm just wondering if you have those numbers.
Kim W. Ledbetter - Senior Vice President
We do have some information on that added, its been overtime averaged about three basis points for the last 20 years, so that's the number. It might have gone upto 20 basis points for one year during that period, but its been virtually nothing for the last 10 years or so. The losses that, that really make up that three basis points recurred in 1988 to 1998 so.
Edward Spehar - Merrill Lynch
Okay. And then I guess, in terms of the opportunity here to originate commercial mortgages. Is there something that's -- is this a significant enough opportunity where this could be some sort of outsized earnings contributor versus what it has been historically in terms of not just the portfolio yield, but what you're managing for others? What are the capacity constraints, I guess for you to do that in terms of managing mortgages for others.
- To read the full transcript on Seeking Alpha, click here »
