Specialty Finance - It’s all about the gains

Wealth Management and Private Banking

16 November 2023

Fixed IncomeMeeting of MindsReal EstateRegulationretailUK economyWealth Management and Private Banking

Expert: James Tevenan, Product Strategy Manager, Securitized Product & Asset-based Finance, Schroders Facilitator: Ben MacGregor, Director, Client Development, Savanta


  1. Investing in retail real estate at high yields due to mispricing of risk - attendees mentioned being cautious on new issuance due to stricter underwriting.
  2. The opportunity for consumers to tap into home equity. They estimate over $1.5 trillion could be unlocked, providing under-appreciated stimulus to the economy.
  3. Private credit filling lending gap - Increased private lending due to bank regulation and pullback. Delegates wondered whether this may lead to a bubble in non-bank lending.
  4. Evaluating the office sector - The weakness in the office sector, especially in the US – key to prediction is to look at indicators such as lease extensions and expect prolonged issues.

Topics discussed included real estate investing, mortgage lending, private credit, fixed income, asset allocation, and market outlooks. Key points made were around include increasing opportunities in private lending and securitised credit markets due to bank regulation and pullback, weakness in the office sector, and a cautious outlook on the UK economy.

There were also discussions around utilising home equity, syndicating loans, and mispricing of risk. Numerous asset classes were mentioned including CLOs, mortgage-backed securities, real estate, and insurance claims advancing.

Key takeaways:

  • Research opportunities in retail real estate, focusing on mispriced risk
  • Analyse home equity lending markets, particularly around pre-2008 mortgages
  • Look into increased lending from non-bank institutions and risks
  • Monitor office sector for signs of improvement, including lease extensions