M&G looks to property for its fixed interest portfolios

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M&G is looking at how it can add property investments, producing bond-type returns, into its fixed i...

M&G is looking at how it can add property investments, producing bond-type returns, into its fixed interest portfolios. The group's head of fixed interest Simon Pilcher, argued rental agreements display many of the characteristics of a fixed interest investment, and described them as a "series of contractural cashflows that cannot fail." Pilcher said there are three factors to consider in property: quality of tenant, terms of the deal and the length of contract. "For companies, a lease is debt by another name," said Pilcher. He pointed out that in the US Cable & Wireless got itself into ...