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Investors eye real estate debt funds despite leverage risk

Reuters  |  NEW YORK 

By Herbert LashNEW YORK (Reuters) - Portfolio managers forced to rebalance their asset mix because of the global stock market rally are tapping the presumed safety of debt funds tied to real estate, but some money managers say they could be unwittingly increasing their risk profile.Investors may not realise all the consequences posed by the leverage managers of these funds take on, warns JCR Capital, a middle market real estate investment firm based in Denver. The safest debt holdings are typically made up of government bonds.Real estate debt funds are often underwritten to return 6 to 7 ...

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First Published: Sat, January 27 2018. 02:18 IST
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