The modest rises in interest rates seen during the year to date do not add up to a high-interest rate environment, points out Justin Curlow, Axa IM Alts’ global head of research and strategy.
“Where we stand today is back pretty much to where we were at the start of the pandemic,” he said. “This low-interest rate environment remains very conducive to real asset investment. I think we’ve got an outsized yield spread relative to government bond deals and even some of the corporate bonds, which will continue to be attractive for institutional investors around the world,” he added.
Curlow said that, as a consequence, the capital side of the equation will continue to be supported by by the wider financial markets. “I think the real focus going forward is going to be on the income side of property performance.”
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