2016 was full of surprises. Politics took centre stage once concerns about China and falling oil prices receded. The plunge in crude prices and heightened risk of further CNY depreciation in January-February triggered disruptive sell-offs in credit and other asset markets. Brexit, Rousseff, Trump and Renzi then induced major financial market turnarounds, most of the time in unexpected ways.
Real asset debt can be seen as a distinct asset class in its own right. The assets in this asset class have a number of common characteristics, including regular, secure cash flows and an attractive risk-adjusted return on capital.