How infrastructure debt can defend against The Zero

We explain why infrastructure debt is relatively resilient to a zero rate environment.

The zero interest rate environment has had a range of effects on investor and market behaviour. We could point to the exuberance of equity markets, which are at or near all time highs. Or that almost a fifth of the global high yield bond market now yields less than 2%. We could cite numerous examples of traditional risk strategies failing to work as expected through bouts of high volatility.