Why Singapore REITs should expect bounce from Fed tapering's no-show

Asset purchases won't be reduced.

According to OCBC, this morning, the Fed announced that it would not reduce asset purchases in Sep-13 and reiterated that the job market remains a key economic concern.

This outcome is above view, given that the consensus was for a tapering of US$5bS$10b.

Here's more from OCBC:

In addition, we note Chairman Bernanke also indicated that, even after winding down assets purchases ahead, the “Fed’s rate guidance and its ongoing holdings of securities will ensure that monetary policy remains highly accommodative, consistent with an aggressive pursuit of our mandated objectives of maximum employment and price stability.”

As a result of this dovish stance, the yield on the 10Y Treasury note dipped 15bp to 2.7% and the S&P500 rallied 1.22% overnight.

While our rating on the sector is NEUTRAL, we believe the REIT sector would likely see a short-term bounce ahead and continue to advocate counters that show significant value at current prices.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia