Infrastructure debt is not immune to a severe economic downturn, but the global financial crisis has left the asset class stronger. We explain why.
As 2020 began, the biggest dilemma most investors faced was whether a decade-old bull market could keep running into the headwind of the US-China trade war.
However, the spread of coronavirus (Covid-19) around the world has snapped investor attention sharply from assessing return potential to gauging potential losses. Central banks have reverted to “global financial crisis mode”. The Federal Reserve, the European Central Bank and the Bank of Japan, to name a few, have announced measures to shore up markets, with bond markets again a focus of support.