JPMorgan Asset Management has indicated a preference for real estate and private equity investments over direct lending, signaling a change in market dynamics.

The chief market strategist for the Americas at the $3.3 trillion asset management firm, Gabriela Santos, has observed positive signs in commercial real estate and believes that opportunities are arising in commercial mortgage-backed securities and non-traded real estate investment trusts.

Santos also highlighted the attractiveness of direct investment vehicles as alternatives for investors seeking higher returns. This perspective aligns with the growing interest in private credit, suggesting that traditional asset classes still hold significant value in the current economic landscape.