DoubleLine Portfolio Manager Andrew Hsu looks at macro issues impacting the infrastructure debt market in this segment of the Infrastructure Debt webcast. Mr. Hsu begins by reviewing factors influencing the broader economy with an eye toward recession signals, including consumer resilience and confidence (1:04), unemployment (2:30), GDP forecasts (4:03) and tightening lending standards (5:33), among other topics.
Mr. Hsu then turns to expectations for how infrastructure debt will hold up in a slowing economy (6:22), including a historical look at default rates. He also discusses why infrastructure debt should be considered for investor portfolios with a breakdown of growth prospects for various sectors of the infrastructure market, including oil and natural gas (7:08), renewable energy (9:27), grid modernization projects (10:12), data center and telecom infrastructure (13:35) and transportation (15:10).
Mr. Hsu concludes by answering questions on allocation (16:34), particularly to the transportation sector, and the outlook for fixed income in a period of rising interest rates (17:30).
Mr. Hsu joined DoubleLine at its inception in 2009. He is a Portfolio Manager for the DoubleLine Total Return and ABS/Infrastructure Income strategies. Mr. Hsu is a permanent member of the Fixed Income Asset Allocation and Structured Products Committees. Prior to that, he was responsible for analysis and trading of structured products, where his focus included residential MBS and ABS transactions. Mr. Hsu’s responsibilities have also included structuring and negotiating terms on new-issue transactions and forming strategic partnerships with issuing entities in order to participate in key transactions. Prior to DoubleLine, he worked at TCW from 2002, where he focused on credit analysis for structured product securities and co-managed two structured product funds centered on debt and equity investments. During that time, Mr. Hsu was actively involved with portfolio management decisions and investment analysis, including reverse engineering complex CDO/CLO structures. He holds a BS in Finance from the University of Southern California and is a CFA® charterholder.
