Viewpoints

CRE valuations held steady in the second quarter, though transaction activity was subdued amid economic uncertainty and periods of market volatility following “Liberation Day”.

Global geopolitical uncertainty has postponed the hoped-for European real estate recovery this year. However, while macro risk is high, property market risk is low—and the pause in recovery arguably extends the opportunity to invest near the start of a new property cycle.

Head of Global High Yield, Scott Roth joins the Streaming Income podcast to discuss how tariffs and quickly shifting macro-economic and political dynamics are impacting corporate fundamentals and the backdrop for high yield bonds and broadly syndicated loans today.

The CLO market remains well-supported, but caution is warranted as the path forward will likely be shaped by both macroeconomic forces and deal-specific characteristics.

High yield bonds and loans continue to offer attractive income in a world where uncertainty remains a constant—and in today’s highly uncertain environment, a balanced approach that looks across fixed and floating-rate assets can help mitigate volatility while preserving upside potential.

Natural resource equities can provide inflation protection and portfolio diversification, making them a potentially compelling investment option in environments characterized by elevated inflation, heightened geopolitical risk, and increasing energy demand.

Infrastructure debt continues to grow in its appeal to investors, partly due to the range of potential benefits on offer—from an illiquidity premium over public markets to enhanced diversification, risk protection and asset-liability matching characteristics. The essential nature of infrastructure debt further strengthens its appeal throughout the ups and downs of the economic cycle.

While Chinese equities have faced increasing scrutiny, we believe the long-term case for the asset class remains compelling—supported by technological advancement, policy support, a resurgent consumer, and attractive current valuations.

For investors looking to generate income, preserve capital, and achieve diversification—particularly at a time when macroeconomic and geopolitical uncertainties are high—taking a global approach to direct lending markets can be part of the solution.