Who is afraid of construction risk?

by Frédéric Blanc-Brude
Abstract:
Since an efficient portfolio of infrastructure debt must by definition achieve an optimal risk-return trade-off, and because construction risk may be remunerated with higher spreads during the construction period, including construction risk in debt portfolios should help achieve diversifi- cation benefits.
Reference:
Who is afraid of construction risk? (Frédéric Blanc-Brude), In Investment & Pensions Europe, 2013.