In 2020, the onset of the Covid-19 pandemic created an incredibly challenging year for markets. Lockdowns and ensuing societal uncertainties raised volatility levels across most major asset classes.
While not immune to the effects of Covid, infrastructure debt proved to be a resilient asset class by continuing to generate stable income throughout the year. Key sectors such as telecommunications and utilities encapsulated this resilience through the essential nature of the services provided.
This proven resilience and stability earmarks infrastructure debt as the ideal investment solution in a post-Covid environment. Moreover, growing demand for and the secular shift to renewable energy as countries embrace the energy transition, in tandem with digitalisation, represent a significant tailwind for the asset class. For investors searching for stable income with contained volatility, infrastructure debt can be a compelling solution for 2021 and beyond.
In her new white paper, European infrastructure debt: Resilient and essential in the post-Covid environment, Karen Azoulay, head of infrastructure debt and lead manager of the BNP Paribas European Infra Debt Fund – a multiple-award winning sustainability fund – presents the case for infrastructure debt.
Read European infrastructure debt: Resilient and essential in the post-Covid environment to find out how major secular trends such as digitalisation and the energy transition are creating attractive investment opportunities in European infrastructure debt