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DoubleLine’s Global Infrastructure team invests in debt that finances projects, which provide essential services in strategic sectors. Projects can include, but are not limited to airports, toll roads, power plants, and renewable energy. Historically, institutional investors have invested in infrastructure mostly through private equity. Infrastructure debt, however, is a nascent investment opportunity that has arisen over the past several years.
Infrastructure Debt potential virtues:
- Higher yields driven by market inefficiency and long-dated assets
- Lower default rates than traditional corporates
- Higher recovery rates than traditional corporates
- Strong underlying fundamentals
- High barriers to entry; often monopolistic assets
- Inelastic demand for essential services
- Predictable cash flows due to project contracts
Focus on capital preservation while exploiting market inefficiencies in the global infrastructure debt space.
Value oriented and research driven using a time tested 5-step process that combines bottom-up research with sovereign macro overlays, leveraging the team’s expertise and knowledge of country and political risks along with infrastructure experience investing across the capital structure.