Interest rates have bumped up recently with the 10-year Treasury yield increasing from 1.70 percent on April 30 to 2.16 percent on May 31. This has impacted interest-sensitive assets including REITs, which fell 6.56 percent last month according to the FTSE NAREIT All REIT Index compared with a gain of 2.34 percent for the S&P 500.
This has me thinking about the road ahead as the Federal Reserve eventually reduces and discontinues its bond-buying and begins to raise interest rates. The global financial system has become so accustomed to easy money that the eventual withdrawal of these policies, even gradually, could be rough, especially since so much of the credit markets are securitized and, by definition, subject to volatility.
Read more...Rough Road Ahead? | Commercial Property Executive
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