Infrastructure companies are high-quality credits where “hard assets” are critical to national infrastructure and hard to replicate
Infrastructure Credit
Infrastructure assets are defensive, recession-resistant and have demonstrated a significantly lower incidence of default and credit loss than the broader market
Infrastructure credit offers a very unique combination of above market yield and below market credit risk, which is very difficult to find elsewhere in broader liquid credit markets.
Strategy Highlights &
Investment Criteria
Strong allocations in primary issuance
Over $69 trillion infrastructure investment required through 2035
Source: McKinsey Global Institute, Bridging Infrastructure Gaps, October 2017
Capital required to support urbanization and population growth in emerging markets as well as repair and expand existing infrastructure in developed markets
Governments are overburdened by debt, necessitating private capital investment
Extremely low incidence of credit loss and default
Complexity of sector results in attractive yields
Credit rating agencies penalize infrastructure and energy companies with unjustifiably low credit ratings.
Midstream companies tend to exhibit defensive characteristics
