How will the coronavirus pandemic and collapsing oil prices affect infrastructure assets and investments? That is the question UBS asks in its special outlook report, Potential impact of COVID-19 on global infrastructure markets: Mixed outlook for infrastructure assets.
Not surprisingly, the assets with the strongest links to GDP — assets such as airports, toll roads and ports — are experiencing the greatest negative effects from the outbreak, as travel bans and social distancing restrictions drastically cut services tied to these sectors.
The oil price war between Saudi Arabia and Russia is amplifying the downward economic momentum and undermining midstream energy infrastructure performance nearly in-line with the transport sectors, but the longer-term outlook has structural positives built in, the UBS report notes.