Overnight index swaps price in stable rates through early 2025, encouraging private asset allocations into leveraged equity strategies aiming to maximize return under predictable capital costs. Reliable, standardized pricing would be a critical breakthrough that could accelerate the growth of private credit across regions. Jack Shannon is a principal, equity strategies, for Morningstar. Analysts note that REIT valuations remain 12% below historical averages, positioning private asset investors to capture upside in commercial real estate as rental yields stabilize and debt refinancing risks ease.
