Negative yield sovereign bonds hitting one third of the market are good news for commercial real estate – Financial Times

February 09, 2016

Sovereign debt bonds that trade below 0% hit the 6 trillion mark. This is bad news for the financial markets as it anticipates for a long period of uncertainty. At the same time it is good news for the commercial real estate market as an income producing property behaves like a bond, with a coupon (rent) and an underlying asset (a real property), that provide positive cash flows, but on top of it, is a natural inflation hedge via its annual appreciation.

Miami River Real estate.jpg
Like a river streaming water, Commercial Real estate throws a stream of cash.

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