Rising Bond Yields: Protecting Your Property Portfolio
The world is in a post-crisis era where, due to unprecedented levels of money printing by central banks, bond yields have been driven to historic lows.
Whilst the conditions that led to this current scenario could persist for the foreseeable future, we are now at a point where we must question whether or not investors are paying too high a price for a perceived safe haven investment.
Conventional wisdom indicates that it is almost certain that gilt yields, along with all developed market government yields, are likely to rise over the coming years. With this in mind, we must examine the circumstances in which the “bond bubble” may burst and, in the event that it does, how commercial property investors could protect their portfolios or enhance their returns going forward.