SINGAPORE (Mar 20): Real estate investment trusts, especially US REITs listed on SGX, may be in for further volatility. The huge stimulus that the US administration is proposing will have to be funded by debt and that could drive up US risk-free rates regardless of the level of the federal funds rate, which is at zero. This could cause a double whammy for the US REITs as the pressure on US capitalisation rates could be upwards at a time when the US economy is slipping into recession.

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