by Frédéric Blanc-Brude, Omneia R H Ismail
The opportunity for institutional inves- tors to become involved in infrastructure debt matters for two reasons: evolution and adaptation in institutional money manage- ment, and public policy. First, infrastructure debt is a fixed-income instrument charac- terised by long durations and typically high credit quality and, as such, can contribute to meeting institutional investors’ long- term objectives. Infrastructure investment has become a theme of increasing interest amongst investors, along with a growing variety of alternative investments, follow- ing the 2007-2009 financial crisis and the challenges posed to traditional portfolio diversification using stocks and bonds dur- ing that period.
Who is afraid of construction risk? Investment solutions in infrastructure debt are just beginning to appear. (Frédéric Blanc-Brude, Omneia R H Ismail), In Asia Asset Management, 2013.