As a broad asset class underlying the full spectrum of economic activity and a non-cyclical slant, infrastructure debt has attributes that stand out for investors. One key point is that many of the services financed with these bonds are indexed, protecting cash flows from rising inflation. Also, the debt typically has floating rate coupons that are adjusted when interest rates rise.
Listen to this Talking heads podcast with investment director Stephanie Passet as she discusses the stability and resilience of infrastructure debt with chief market strategist Daniel Morris. She highlights the low correlation of the bonds with listed financial products and singles out junior debt as a potential source of additional yield. Sector-wise, she expects further growth in energy transition and digitalisation segments such as EV charging, smart grids and in social infrastructure.
You can also listen and subscribe to Talking heads on YouTube.
Talking heads brings you insights on topics that matter to investors, analysis of the world and financial markets, and conversations with our investment experts, all through the lens of sustainability.
Disclaimer
