The recent increase in interest rates has caused alarm for many fixed-income investors. Many have said it is the end of the 30-year fixed-income bull run. Since the onset of the last recession and the attendant slow growth following, the Federal Reserve has been extremely accommodative.
In May, when the Fed at last signaled the beginning of the end of the super low-rate environment with the announcement of a gradually tapering-off of its bond-buying program, there was generally a sense of panic for fixed-income and yield-oriented investments such as REITs. Has the income which had been the investors guiding light for five years, suddenly become an oncoming train? Does this spell the death-knell for commercial real estate? I don’t think so.
Read more...A Requiem for Commercial Real Estate? | Institutional Investors content from National Real Estate Investor
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