This paper examines relative value amongst certain groupings of debt instruments typically classed under the banner of infrastructure debt. We observe that triple-B rated investment-grade rated debt within the Infrastructure & Transport sub-category offer the most consistent, risk adjusted returns across the maturity spectrum, whilst single-A rated bonds in the Energy & Utility sub-category offer the greatest value – at the long-end of the maturity spectrum, after adjusting for expected losses.
Infrastructure Debt: Relative Value?