Fixed income is dying, long live residential!

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Presented by

Dr. Mahdi Mokrane, Head of Investment Strategy & Research at PATRIZIA | Brendan Maton, IPE

About this talk

– Against a weak macro-economic environment, investment grade fixed income yields are and will remain ultra-low – Fixed income is now more a dying asset class than a no-brainer for asset allocators, and real assets offer investors higher yielding solutions – Thanks to superior cash flow characteristics and capital value preservation, diversified residential, in Europe in particular, is an excellent substitute for fixed income – There is a 250-300 basis point yield spread compared with an average ten-year government bond yield – With inflation concerns rising, residential is a good natural hedge thanks to explicit rental indexation – Looking ahead, European residential will emerge strongly from COVID-19 – Post COVID-19, European residential markets offer investment opportunities across the risk spectrum … but investors need to rely on experienced and well-resourced managers to reap the benefits of this large market
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