- June 1, 2021: Vol. 14, Number 6

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Bond-like characteristics? A quarter of rising interest rates highlights the role of duration in infrastructure investments

by Abhishek Gupta

The following article reports on several infrastructure performance indexes. Details of the indexes, including how they are constructed and used are available at and Note: All reported data is for equally weighted indices expressed in local current total returns.

After a year that tested the resilience of infrastructure investments and their sensitivity to lower dividends in the transport sector because of COVID-19 lockdowns and a higher equity risk premium across all sectors, first quarter 2021 is a reminder of the role of interest rate risk in long-term investments that have “bond-like” characteristics.

As a point of reference, Treasuries had the worst quarter in many years (–4,3 percent total return) and the yield on 10-year U.S. Treasuries, which started the year at 0.93 percent, stood at approximately 1.7 percent at the end of March. Corporate bonds follow

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