Fixed interest rate: Zero interest
Most recently, government loans not only have minimal projected yields, but also even selected BB bonds are burden with negative interest. Risk premiums are regressive, a debtor’s example (April 17), BB -3.8%.
Monetary expansion and shrinking interest have triggered a distorted financial market, rendering repercussions on investment portfolios unpredictable. Pension funds are nonetheless still tied to legal obligations and to generating stable earnings. Private investors are also dependent on reasonable yield.
In concrete instances, this investment class offers the possibility of high yields, whereby volatility and risk increase proportionately. SMI 2012
-2015 average yield 3% p.a., screener sample portfolio 5% p.a. (without dividends). Long-term SMI average dividend returns 2.4%.
The net yield of many properties lies between 1% and 3%. Double-digit returns are possible with suitable objects such as in the commercial building example, and even more so with projects. This is where Bargella Mezzanine Fund
steps in by granting mezzanine loans which makes many such projects possible in the first place. And, by the way, an investment fund is easier and less costly than a direct investment in real estate.
The advantages of mezzanine funding
Mezzanine Fonds stellen besonders im gegenwärtigen Anlageumfeld eine interessante Alternative dar.
Sie ermöglichen aufgrund der genutzten Opportunität vernünftige Renditen bei begrenztem Risiko.
- Respectable yields. Bargella mezzanine fund target returns: 5 % p.a
- High security due to mortgage on real estate
- Additional security via bank credit check
- Minimal correlation with other investment categories
- Solid earnings from mezzanine loans: 7 % - 14 %
- Real estate remains in high demand
- Easier and less costly than direct real estate investments