Global real estate to outperform bonds and equities
Global real estate returns are looking healthy over the next five years, providing a strong relative performance versus bonds and equities. We forecast total returns for global direct real estate and REITs to average 6.5% to 7% annually over 2022-2026, significantly above bonds and equities, which are projected to return 0.7% and 2.5% per annum, respectively.
What you will learn:
- We also expect global economic expansion to support real estate income growth while structural forces keep long-run interest rates low, thus moderating the near-term impact of rate increases on property yields.
- That said, risks from persistently higher inflation remain.
- Plus, there are uncertainties regarding the longer-term real estate outlook, such as the effect of structural forces on demand and the degree to which the climate transition affects obsolescence and future supply.
NBP puts hikes on hold despite rising inflation and FX woes in Poland
The National Bank of Poland (NBP) kept its policy rate unchanged at 6.75% yesterday, undershooting consensus and our expectation of a 25pbs move. The decision took place against the backdrop of another upward surprise in inflation, which picked up to 17.2% in September, as well as mounting pressure on the PLN, not least due to the hawkish shift of AE central banks.Find Out More
Local rates and FX: Asian local currency sovereigns – not long now
The pieces are almost in place for a high conviction OW on Asian local currency debt, but not quite. Indeed, we maintain a cautious view on all EM local currency sovereign bonds, including Asia, given the relentless concern over the dollar and domestic inflationary pressures.Find Out More