Profiting from ultra-low interest rates - European REITs

Focus on core European real estate

clock • 3 min read

In the third of a short series from the Baring Multi-Asset Group on opportunities in the current ultra-low interest rate environment, Chris Mahon (pictured) explains why European real estate investment trusts (REITs) should be a major beneficiary of growing investor interest in property

While the European Central Bank (ECB) may not have been the first major bank to take interest rates negative - the Swiss being able to claim that title - European policy has become synonymous with negative rates. In early 2014, ECB president Mario Draghi crossed the Rubicon by taking rates to -0.1%. Since then he has become bolder and rates now sit at -0.4%. This has become a major issue for the European bond market. There is very little yield around. German 10-year bunds now yield negative 10 basis points. Italian 10-year government bonds yield just 1.1%, despite being a country with gr...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Darius McDermott: Electrification's second act

Darius McDermott: Electrification's second act

Electrification has become a national security question

Darius McDermott
clock 24 August 2026 • 5 min read
What advisers need to know as SpaceX fuels space investing interest

What advisers need to know as SpaceX fuels space investing interest

WisdomTree’s Mobeen Tahir unpacks the space economy theme

Professional Adviser
clock 14 August 2026 • 1 min read
How markets have developed in 2026 so far

How markets have developed in 2026 so far

'Active allocation does not mean constant trading or short-term market calls'

James Flintoft
clock 12 August 2026 • 3 min read