There’s a common misconception that as a ‘bond proxy’, infrastructure asset prices will fall as bond prices do when rates rise. But these hard assets have sufficient inflation protection to drive a more robust outcome.
Author Archive | Gerald Stack
Looking back over the major economic downturns the world’s markets have experienced, airports have shown their ability to bounce back from short-term passenger shocks.
Infrastructure assets range widely from toll roads, ports, airports, power distribution, communications, etc, but there are common risk factors to consider in all of them.
When deciding between listed and unlisted infrastructure securities, the focus should be on the cashflows, the risks associated with those cashflows and the entry price to buy the assets.