Fixed Income

Planes, trains and automobiles

13/05/2013

Alicia Low

Alicia Low

Senior Credit Analyst

Of late, there have been robust debates on the current state of Australian infrastructure from whether Sydney requires a second airport, the viability of a high-speed rail linking Brisbane-Sydney-Melbourne to what are the appropriate funding models for roads, hospitals, rail networks and even prisons! Ultimately, the debate comes down to who’s going to pay for these essential assets critical to the nation’s long-term economic prosperity?

In this article, we highlight why infrastructure investment is not just an equity story, but also a debt one.  We explain the common financial traits with infrastructure assets that make them attractive investments for our Real Return, Fixed Income and Credit Securities funds and explain why investing in infrastructure requires significant bottom-up analysis and why not all infrastructure assets are good investments.

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