Institutional Real Estate Americas
January 2012: Vol. 24, Number 1Buy For $250.00 Add to Cart
The New Normal: Investors Search for Returns in Low-Yield Environment
In the current environment of low growth and high volatility, investors are searching for new ways to maximize returns and capture higher yields. From exploring out-of-favor or overlooked core to investing in debt strategies or selective secondary markets, they are doing all they can to manage the risk that exists in the broader market, while producing the desired amount of income and growth within their portfolios.
Another One Bites the Dust: 2011 Presented a Mixed Bag for Investors; Continued Uncertainty in 2012
Another year has gone by, with only marginal improvement in the overall domestic economy. Markets continue to demonstrate wide mood swings, holding on to every glimmer of hope, only to come smashing down as soon as the next dark cloud appears on the horizon.
We saw the emergence of the sovereign debt crisis in Europe coupled with the issuance of new regulations such as Basel III, Solvency II and Dodd-Frank; the battle over the raising of the U.S. debt ceiling followed by the temporary reprieve granted by Congress; the Arab Spring and the fall of Gaddafi in Libya; flooding in various regions around the world; continuing tensions between North and South Korea, and between China and several of its neighbors; the end of Osama bin Laden; rioting in London, the suburbs of Paris and downtown Oakland; escalating energy and food prices; rising then falling commodity prices; the threat and then the aversion of hyperinflation in China — so much turmoil, so much turbulence.
Economic Restructuring: How Will Economic Restructuring in Developed Countries Affect Inflation in Emerging Markets?
The debt crisis is part of a long-term economic restructuring in the developed markets. The likely policy response, given the dominant thinking in both academic and policy circles, is inflationary in the long term. The end result will be a one-time but prolonged inflationary impact that is likely to support real estate pricing in emerging markets for years to come.
Has the Time Arrived?: Avoid the Pitfalls and Investors Can Earn Attractive Risk-Adjusted Returns in Europe
Rather than being one homogenous market, residential real estate in Europe is fragmented, comprising a host of local markets with complex and varied drivers. Government planning regimes, legal frameworks and local customs are among the factors that differ significantly across locations. The disparity extends to the investment side, as markets are usually dominated by small local players.
Investor Vigilance: Custodians and Counterparties
“MF Global just filed for bankruptcy,” were the first words my friend said to me on the phone. Before I could respond, he added, “Don’t worry about me; I moved most of my account away from them a few days ago. What I’m calling about now is this: How concerned should I be about the U.S. bank lenders to MF Global, especially the lead banks that syndicated the loans? Do you think they have enough exposure to bring them down as well?”
Breaking Up Is Hard to Do: How to Remove a General Partner from a Commingled Fund
In the recent economic downturn, investors who were dissatisfied with the performance of the general partner in underperforming commingled funds may have been surprised by the limitations on their ability to remove the general partner. As a result of those experiences, investors are focused on improving their rights to remove or replace general partners. This article discusses typical fund provisions regarding general partner removal. As might be expected, the provisions vary greatly from fund to fund, and the final provisions depend on the negotiating leverage of the limited partner investors.