Hotels, pipelines, convenience stores and automaker bonds are among the assets being bought by some of the world's biggest institutional investors as they look for value in a world thrown into turmoil by the coronavirus pandemic.
In interviews with sovereign wealth funds, retirement plans and money managers across Asia-Pacific and Europe that collectively manage about $3.4 trillion, one thing was clear: Many of them are avoiding the overheated stock market.
The most common outlook was one of caution. They are mindful that much of the rebound in markets and private company valuations is thanks to ultra-low interest rates, massive central bank stimulus and government fiscal support, some of which could start to be wound back in coming months.
With asset values still seen as inflated, even in some hot areas like health care and technology, many are waiting for a potential second downturn after stimulus measures end but before mass vaccinations enable economies to restart without risking widespread infection.