Profiting from ultra-low interest rates - European REITs

Focus on core European real estate

clock • 3 min read

In the third of a short series from the Baring Multi-Asset Group on opportunities in the current ultra-low interest rate environment, Chris Mahon (pictured) explains why European real estate investment trusts (REITs) should be a major beneficiary of growing investor interest in property

While the European Central Bank (ECB) may not have been the first major bank to take interest rates negative - the Swiss being able to claim that title - European policy has become synonymous with negative rates. In early 2014, ECB president Mario Draghi crossed the Rubicon by taking rates to -0.1%. Since then he has become bolder and rates now sit at -0.4%. This has become a major issue for the European bond market. There is very little yield around. German 10-year bunds now yield negative 10 basis points. Italian 10-year government bonds yield just 1.1%, despite being a country with gr...

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