Economic recovery and decarbonization: As the global economy rebounds, the effects of the pandemic continue to weigh on the growth outlook. Fiscal and monetary policy continue to play a central role in supporting the recovery from COVID-19. However, as inflation accelerates, we expect a progressive increase in bond yields, driven by central bank tapering efforts in 2022. With GDP already showing signs of moderation, the European medium-term growth outlook is now more uncertain and may rely more on public spending programs. Decarbonization increasingly appears at the top of policymakers’ agenda, a factor that may prove supportive for green infrastructure and for the private infrastructure debt pipeline in 2022.

Infrastructure credit outlook: Infrastructure has demonstrated low correlation to business cycles and long-term cash flow predictability compared with equally rated debt in other sectors, particularly during bearish credit cycles. As