Private Real Estate Credit as a Replacement to Traditional Fixed Income Investments

As Canada’s population ages, the need for reliable income streams to support retirement becomes increasingly important. Traditionally, government and corporate bonds have provided this stability, but with rising interest rates, these options have shown vulnerabilities. In light of recent economic shifts, higher-returning and more stable alternatives, like private real estate credit solutions, are becoming more attractive. Driven by demographic changes and evolving banking regulations, there is growing demand for higher-yielding fixed income products. As banks reduce their lending for commercial real estate, non-bank lenders, particularly private real estate credit investors, are stepping in to fill the gap.

Private real estate credit offers several advantages over traditional fixed income options, including higher potential returns, diversification, reduced sensitivity to interest rate changes, inflation protection, and secured collateral. With its flexibility and customized investment structures, private real estate credit presents a unique opportunity for Canadian investors to enhance their portfolios.

Fiera Real Estate has extensive expertise in this growing asset class, and its Canadian Real Estate Debt Fund is designed to deliver strong, risk-adjusted returns. Discover how private real estate credit can strengthen your investment strategy.