The great yield shift: why banks are gaining altitude as Reits seek grounding
High-yield investments are diverging. Higher rates benefit banks, while Reits face challenges from narrowing spreads, rising debt costs, and low valuations. How do we navigate uncertainty to secure be...
Singapore investors have long treated banks and Reits as two sides of the same income coin, because both pay dividends, both are familiar and both have earned their place in local portfolios over many years. But the higher-for-longer rate environment is pulling them in opposite directions, and the gap between them is now wide enough that treating them as interchangeable could cost you.
In this episode of Money Hacks, a podcast from The Business Times, Howie Lim is joined by Vijay Natarajan, research analyst, and Shekhar Jaiswal, head of Equity Research, both from RHB Bank, for a conversation that is equal parts rigorous and entertaining. These two clearly enjoy disagreeing with each other, which makes for a genuinely useful listen.
Why listen
- Why rising rates hit Reits in three distinct ways simultaneously Yield spreads, debt costs and asset valuations are all moving in the wrong direction at once. Natarajan breaks down exactly how each one works and why the combination is so painful.
- Why banks are the mirror image of that story right now Net interest margin expansion, wealth management demand and strong mortgage activity are all pointing the same way. Jaiswal explains the tailwind and where it could stall.
- Which specific Reits and banks the analysts actually favour This is not a theoretical conversation. Both guests name names, including CICT, Suntec, FCT, DBS and OCBC, and explain the reasoning behind each pick.
- Why the answer is never banks or Reits but always banks and Reits The closing argument from both guests is the most practically useful part of the episode. The question is not which sector to pick but how to balance between them as conditions shift.
The divergence is real but it is also cyclical. This episode helps you think about which side of it to be on right now. Listen now.
Money Hacks is the flagship personal finance podcast from The Business Times. Catch past episodes at bt.sg/podcasts. Have a burning question or episode idea? Email the team at btpodcasts@sph.com.sg.
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Written and hosted by: Howie Lim (howielim@sph.com.sg)
With Vijay Natarajan, research analyst and Shekhar Jaiswal, head of equity research, RHB Bank
Edited by: Howie Lim & Claressa Monteiro
Produced by: Howie Lim & Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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ABOUT THE PODCAST
Money Hacks is a crisp, weekly podcast hosted by Howie Lim. Every Monday, it unpacks personal finance strategies and investing insights through conversations with expert guests. Whether it’s navigating employee perks, finding resilient sectors, or exploring value-based investing, listeners get actionable financial wisdom without the waffle.
