Record low interest rates have fundamentally changed the playbook for income investors. The traditional havens of stocks and bonds are out of reach with compressed yields and stretched valuations. This has made the search for reliable and attractive risk-adjusted sources of income a dominant narrative for investors, who may often resort to an undesirable move up the risk curve to maintain returns. For institutional and wholesale investors, CRE debt is widely accepted as an asset class, providing diversification and strong, risk-adjusted returns. Australia has a relatively under-developed private debt market, with big banks historically dominating. With banks withdrawing, alternative lenders have greater opportunity. Coupled with rates likely to rise in 2022, it may be a good time to consider CRE debt. - Nick Bullick, Qualitas. Earn 0.25 CE/CPD hrs on Portfolio Construction Forum