Fast reading
- In the years following the global financial crisis, low rates reduced absolute returns for real estate lenders, but that is set to change now that rates are rising.
- Defensive real estate debt strategies should be largely protected from short-term property value declines, and may actually benefit from the rising rates environment.
- An allocation to real estate debt as part of a wider property investment strategy can help reduce the impact of real estate yield widening on overall portfolio return, while at the same time still maintaining exposure to the income that real estate assets generate.
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