Higher Rates Are a Headwind, but US Housing Rests on Solid Foundations

The US housing market has been on a tear in recent years, supported by low interest rates, favorable supply/demand dynamics, and a recent boost from the pandemic-related demand for more space. Investors interested in gaining exposure to the asset class are seeing their choices expand. This publication provides an update on some of the macro […]

April 2022

Many Real Estate Assets Will Be Boosted by Secular Tailwinds

We believe a healthy macro backdrop and strong demand for inflation-sensitive assets will support most real estate assets in 2022. However, given stretched valuations for many core assets and COVID-19–related uncertainty around some sectors, we think return prospects are highest for assets that benefit from secular trends, such as the growing demand for healthcare and broadband.

December 2021

Allocations to 21st-Century Infrastructure Increase

The infrastructure market has evolved since the financial crisis. Almost a majority of current investing is now in “21st-century infrastructure,” which includes digital and renewable assets. Given the expected importance of both sectors to future growth, we anticipate that investors will commit greater amounts of capital to each in 2022.

December 2021

Contagion Risk From China Evergrande Likely Low

Fears that a default by China Evergrande Group could trigger a financial crisis has led to some weakness in global equities in recent days, with the MSCI All Country World Index falling 3.5% from its peak. While Evergrande is likely to default and require a major restructuring, we view fears of a broader financial crisis as overblown.

September 2021

Investing in 21st Century Infrastructure: Benefiting from the Digital Revolution

The importance of digitisation has grown during the pandemic, as people have relied more on digital platforms, video streaming, and cloud storage. Investment across the digital infrastructure value chain continues to rise in response, and should increasingly be a priority for real asset investors.

May 2021

US Real Estate Outlook: Patience Required

This paper discusses recent trends in US commercial real estate fundamentals and looks ahead to what might be in store for the remainder of 2021. Overall, we are reluctant to sound overly bullish about the broad asset class, as the outlook for some sectors is unclear. Still, for investors looking to immediately deploy capital, we highlight two categories of opportunities.

April 2021

Is Distressed Real Estate Actionable Today?

Yes, but the opportunity set is currently limited. To date, the large amount of government stimulus and lax credit enforcements, the differentiated impact of COVID-19 on real estate sectors, and the challenges associated with valuing assets have worked to keep broad-based distress at bay for now.

October 2020

Should Investors Trim Gold Exposure, Given the Rally in Prices?

Yes, investors who have made tactical bets in gold should consider scaling back their positions and locking in some gains.

August 2020