All Profit is Derived From Risk

The 'Low Risk' Paradox

As management thinker Peter Drucker famously stated, "all profit is derived from risk."

For decades the commercial property sector has chased the mirage of the (very) low risk return, driven by the demands of financiers & investors, and reinforced by conservative valuation practices. The age-old reference point of the ‘bond yield spread’ evidences an app…