Outlooks

Our fast-moving recovery is steering into headwinds from policy, global growth uncertainty and pandemic-related supply disruptions. With valuations high across the board, markets enter Q4 with healthy growth, but waning tailwinds.

Credit markets have been remarkably steady this year and enter Q4 on solid footing. This tight spread environment presents challenges, but the largest risks we see lie outside credit markets.

As the economy rebounds, CRE fundamentals are materially improving. Still, investors must navigate uncertainty around how pandemic trends will impact certain property sectors.

Inflation is dominating the economic discussion, and with good reason. Rising inflation and the Fed’s hawkish pivot have critical implications for interest rates and investors.

With the pandemic now (hopefully) firmly in the rearview mirror for domestic markets, a new environment has emerged for high yield bonds and senior secured loans.

Riding on growth optimism in the broader economy, we expect to see improvement in both CRE fundamentals and transaction activity during Q2.