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In the current low-rate environment, the search for yield has led investors to alternative fixed income categories. Besides investments like mortgage loans and asset-backed securities, infrastructure debt offers institutional investors various advantages. Being a less liquid investment, investors in infrastructure debt receive an attractive illiquidity premium. On top of that, this asset class offers diversification benefits within a fixed income strategy, historically low default rates, high recovery rates and low capital charges under Solvency II.
At present, more than half of all infrastructure projects relate to the renewable energy transition. Infrastructure debt is about assets that provide essential public services such as transport, energy, healthcare, utilities and telecom infrastructure. This also includes companies that tackle environmental problems, e.g. water treatment and minimizing energy wastage. In the long term, these assets generate predictable and stable cash flows and contribute to a more sustainable world.
René Kassis, Managing Director, Head of Private Debt at La Banque Postale Asset Management will tell you more about this.
DISCLAIMER: Professional investors located in the following countries can sign in for the webcast: Netherlands; Belgium; Luxemburg, Germany; UK; Austria; Switzerland; Norway; Sweden; Finland; Denmark; Italy, Spain and France