Q What does infrastructure debt offer to investors?
Infrastructure debt offers investors the combination of long-dated, non-cyclical, investment-grade risk profile opportunities, coupled with superior returns to comparable corporate benchmarks and better credit characteristics. The asset class exhibits lower default rates and higher recovery rates than comparable corporate credit.
For example, the average recovery rate for infrastructure debt is about 73 percent compared with about 53 percent for corporate credit according to Moody’s data for BBB credits from 1983 to 2016.
