Banks are still the primary source of infrastructure debt even after effectively pulling out of the market following the financial crisis. But the non-bank infrastructure debt fund market is emerging as an attractive option both for borrowers and investors with two broad segments.
From the Current Issue
Ask someone with an understanding of water infrastructure in the United States about prospects for private investment in the sector, and at first their ears perk up because the possibilities seem endless.
Infrastructure. Early civilization was built upon it: roads, bridges, dams, aqueducts, sewers and ports. Today, developed nations have added to these ancient beginnings new technologies such as power, satellite communications and high-speed long-distance travel. Fiber optic and wireless communications are perhaps the latest infrastructure frontier.
The following article is the second of several excerpts that will appear in I3 from Institutional Investment in Infrastructure in Emerging Markets and Developing Economies,a report commissioned by the World Bank and the Public-Private Infrastructure Advisory reviewing the role of institutional investors in financing infrastructure in emerging markets and developing economies. The discussion analyzes the present level of involvement as well as the future investment potential of new financing sources such as public and private pension funds, insurance companies, and sovereign wealth funds
Infrastructure has been a hot new investment class over the last few years, and it is only growing in popularity, evidenced by the fact that nearly half (49 percent) of infrastructure investors expect to increase their allocations to the sector in the next 18 months, according to The Ascent of Real Assets, the latest survey and report from BlackRock.
The following report is a review of first quarter 2015 research notes by Moody’s Investors Service and Standard & Poor’s.