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Investors Ship Comes In: It is full steam ahead for the maritime industry
The search for new yield-oriented investment opportunities has been a notable characteristic of the post-global financial crisis landscape. However, in the sea of alternative investing, the island left largely unexplored remains the maritime industry.
Allocating to maritime assets is an area of increasing popularity, based on the premise that such investments offer a new avenue for obtaining scarce higher-yield-oriented returns. Ships — like buildings, pipelines and toll roads — can provide a visible, reliable and consistent stream of income. When risk can be effectively managed, maritime investments are also capable of generating an attractive relative return versus other financial and real assets.
A yield-oriented maritime portfolio, employing diversified and long-term charters to creditworthy counterparties, can provide income in excess of other yield-oriented alternative portfolios, such as infrastructure and real estate. This premium extends to m