Principal Bets on Commercial Property as Bond Yields Fall
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Principal Financial Group Inc., the seller of life insurance and retirement products, said it’s turning to real estate to increase investment income as near record-low yields pressure returns from bonds.
“The debt market is very strong, the equity market is growing” in commercial property, Chief Investment Officer Julia Lawler said in a presentation to investors today. “The fundamentals continue to improve, largely because there’s a lot of supply constraints.”