The BEAT with Ben featuring Rui de Figueiredo

With carry still attractive but valuations tight, we highlight where active management may uncover opportunities across duration, emerging markets debt, corporate credit and securitized assets. Watch this video to find out more.

Elevated market volatility and a resilient economy favor net lease investments that are characterized by durable, long-term cashflows with fixed escalations in sectors and assets that are supported by long-term structural demand drivers. However, given heightened credit risk with some tenants who may struggle to absorb higher input costs it is critical that investors truly understand the residual value of the underlying real estate in addition to the credit of the tenant in assessing the attractiveness of a net lease investment.

July marked a shift from the relative stability of June toward renewed pressure from higher global yields. Fixed income markets remained functional, supported by technical demand, but rising rates, tight spreads, and growing dispersion reinforced the importance of carry, relative value, and active security selection.

Private credit has entered a new phase. Stronger underwriting, wider spreads and greater manager differentiation are reshaping the direct lending market, creating new opportunities for institutional investors focused on income and portfolio resilience.