How do rising interest rates affect natural capital investments?

Endnotes

1 Board of Governors of the Federal Reserve System (US), Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Quoted on an Investment Basis [DGS10], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DGS10, May 15, 2023.

2 See for example Goolsbee and Syverson, 2023 (https://www.nber.org/papers/w30845). Modular mass timber construction may offer some relief to productivity challenges in the construction sector, and climate benefits in addition (https://www.nuveen.com/global/insights/alternatives/mass-timber).

3 Debt-to-equity ratios for 2022 and 2023 are forecasts.

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A word on risk

As an asset class, agricultural investments are less developed, more illiquid, and less transparent compared to traditional asset classes. Agricultural investments will be subject to risks generally associated with the ownership of real estate-related assets, including changes in economic conditions, environmental risks, the cost of and ability to obtain insurance, and risks related to leasing of properties. Nuveen provides investment solutions through its investment specialists.