How to implement an effective infrastructure debt strategy
Infrastructure debt as an investable asset class? Surely this is for the sophisticated investor only? Well maybe not, PensionDanmark are buying up debt, Allianz having just poached a crack infrastructure debt team and AMP and Hadrians Wall have just closed their first infra debt fund.
Ok these guys are still pretty sophisticated, but could infrastructure debt be for you? Would your board of trustees be interested in low risk, steady, if modest, returns? If so then you may be asking yourselves some of the following questions:
· How do I fit infrastructure debt funds into my portfolio – fixed income, infrastructure or a new bucket?
· Should debt investors focus on buying bank loans or buying bonds?
· How should investors allocate between junior and senior infrastructure debt?
· Do I need to expand my existing team’s expertise, outsource or create a new bucket and hire a new team?
· What are the benefits of hiring an intermediary?
· How does the wider implications of solvency II impact infrastructure debt?
Do you agree are these the important questions that you’re all asking yourselves?
Hadrian’s Wall be putting together a report for us answering the above questions in the next couple of weeks, we’ll keep you posted!