Real estate senior debt funds
The global financial crisis has its roots in several interlinked events. The first phase began with the bursting of the subprime bubble and the collapse of Lehman Brothers in 2008-2009, and has led to a loss of trust in the ’too big to fail’ view that previously prevailed in the markets.
- Sovereign yields are at all-time lows in safe haven Northern European countries
- Solvency II pushes insurers down the risk curve, but risk-free yields cannot feed their balance sheets
- Basel III leads to bank deleveraging, especially on long-term financing
- Asset managers respond to this context by setting up debt funds:
- Filling the bank funding gap
- Responding to insurers’ quest for long-term secure yields
- This context creates opportunities for well advised borrowers and investors
Performance issue 10 - January 2013
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.