Infrastructure Debt – A solution for the current environment?

This article was produced by BNP Paribas Asset Management as part of their valued industry partnership to Insurance Investor.

Particularly during the height of the pandemic and ensuing lockdowns, infrastructure debt proved to be resilient as an asset class – appealing to a broad section of institutional investors in form of pension funds, insurance companies and sovereign wealth funds. Despite lockdowns shutting down businesses and many aspects of society, specific sectors such as renewables, telecommunications and utilities continued to perform through the provision of essential services.

However, while infrastructure debt demonstrated to be a safe haven, new challenges have since arisen as we move into the new post-pandemic normal. A key concern for investors is now rising inflation, as well as rising interest rates.

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