REIT bonds: opportunities after the storm
Reading time:20 MIN
REITs segments such as logistics and data centres on the rise
Bonds issued by real estate operators have had an eventful journey over the last two decades. The bursting of the real estate bubble was followed by the Global Financial Crisis in 2008, and the euro crisis in 2011. In the low-interest environment that followed, real estate companies issued increasingly high bond volumes. After a sell-off of real estate bonds during the COVID-19 crisis of 2020 and the subsequent recovery, risk premiums recently rose to their highest level since the GFC. Markets fear the consequences of rising financing costs, high inflation and a cooling of the economy. We believe that these fears are overblown and that favourably priced real estate investment trusts (REITs) – such as those operating in the logistics and data centre segments – are increasingly attractive.
Authors
Gerald Deutsch
Gerald Deutsch has been with the company since 2021. As fund manager of the mutual funds Berenberg Financial Bonds and Berenberg Euro Bonds, he is responsible for the selection of corporate bonds, with a focus on high-yield and financial bonds. As part of his graduate programme at Berenberg, he held various positions in discretionary equity and bond portfolio management, fixed income research and institutional fund sales in Germany and Switzerland. The CFA charterholder exited the Berenberg graduate program early in 2022 and became a portfolio manager with a focus on corporate credit. He holds a Master of Finance from the Frankfurt School of Finance & Management and a Bachelor of Psychology from the University of Kent.
Gerald Deutsch
Portfolio Manager Fixed Income Euro
Christian Bettinger
Christian Bettinger has been with the company since June 2009 and heads the Portfolio Management Fixed Income department. As fund manager of the mutual funds Berenberg Euro Bonds and Berenberg Financial Bonds, he is responsible for the selection of corporate bonds. He trained as a banker and then studied business administration at the Catholic University of Eichstätt-Ingolstadt. In 2010, the business graduate was taken on early from the Berenberg trainee program as a fund manager with a focus on derivatives and bonds. Bettinger is a CFA Charterholder, Certified Financial Engineer (CFE) and authorized Eurex trader.
Christian Bettinger
Head of Portfolio Management Fixed Income
