Yields Blowing Out: How To Play It

With yields on government debt continuing to soar, anything interest rate sensitive will continue to get hit, and that includes real estate investment trusts. REITS are a preferred method of investment over bonds, as they also offer capital appreciation, in addition to high dividend payments. If interest rates continue to climb, then bonds become attractive over REITs, as they are seen as a safer instrument, and REIT share prices plummet. This has been since in the past few days in the share prices of REITs like General Growth Properties GGP, Simon Property Group SPG, and Macerich MAC. However, if you believe this is just a temporary move up in yields, then adding to positions in these names or initiating new ones might make sense here with shares off their 52 week highs. Disclosure: long GGP