Publications

- November 2010 Vol. 3 No. 11

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Cyclical Companies Begin to Catch Up

by Craig Noble

The year 2010 has been characterized by a global search for yield within equity markets, which has been positive for the entire global listed infrastructure asset class.

While global investors continue to focus on yield, the sectors most connected to economic recovery and GDP growth have begun to catch up. Transportation had a strong quarter, especially airports and toll roads, which outperformed the broader Dow Jones Brookfield Global Infrastructure Index by 5.64 percent and 8.9 percent respectively. Additionally, emerging markets rallied, specifically Brazil, China and India, as valuations on riskier securities became more attractive.

INTEREST RATE STRATEGY

Taking advantage of the lowest interest rate environment in more than 50 years, infrastructure companies issued a significant amount of debt with long-term maturity profiles. One example is TransCanada Corp., one of North America’s largest oil and gas pipeline companies, which issued $1 billion in 3.8 per

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