European Market Monitor Q4 2023

Higher interest rates have had the desired effect of reducing inflation prints, while also reducing economic growth. Secure income real assets remain attractive to investors seeking long-dated inflation-linked income to meet liabilities and diversify their portfolios.

The prospect of interest rates falling from their recent highs is supportive of valuations albeit tempered by economic uncertainty. The growing European long income property market provides a good source of such assets, with greater than EUR1bn of pipeline to a diversified set of sectors and pan European geographies.

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UK Market Monitor Q1 2024

Real and nominal Gilt yields both increased over the quarter. Real yields averaged an increase of circa 15 bps, while nominal yields increased by circa 30bps. This led to a commensurately higher break-even inflation rate.