GO
Loading...

Enter multiple symbols separated by commas

Pisani: Big Bet on REITs Recovery

What's up with Real Estate Investment Trusts (REITs)? The MSCI Reit Index is up another 2.7 percent to another new high, far outperforming other sectors.

There is no big upgrades, or even strong individual stories.

A quick check with traders comes up with a grab-bag of reasons:

1) real estate fundamentals are bottoming

2) short interest, once high, continues to drop

3) fund flows are increasing

4) increasing access to capital.

One analyst who just got out of meetings with large fund managers noted that his clients were underweight and are being forced to put money back to work.

He noted that there was not a lot of product for sale, that lenders are not being forced to foreclose, and that everyone is still searching for yield.

_____________________________
CNBC Data Pages:

_____________________________

Questions? Comments? tradertalk@cnbc.com

  • Bob Pisani

    A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

Wall Street

  • Robert Shiller

    Nobel Prize-winning economist Robert Shiller says that his key valuation indicator is flashing warning signs.

  • Lael Brainard

    The Fed is in the early stages of an analysis on changes in bond market liquidity, amid signs that liquidity may be less resilient than in past.

  • Bill Gross

    Janus Capital acquired a majority interest in Kapstream Capital and said Kapstream's Palghat will support Bill Gross as co-portfolio manager of the Janus Global Unconstrained Bond strategy.