On the Economics of Listed Infrastructure Returns
41 Pages Posted: 18 Feb 2021
Date Written: December 24, 2020
In this study, we provide a framework of economic drivers of the returns of listed communication-, energy-, transportation- and utility infrastructure. Using five decades of U.S. data, we find important relations between macroeconomic indicators and infrastructure sector performance. The analysis has significant implications for infrastructure investors in portfolio construction exercises. Investors seeking exposure to GDP should invest in transport, those investing in energy assets will be exposed to energy spot price volatility, while utilities investors are most exposed to interest rate risk.
Keywords: infrastructure listed economics performance returns sector transport utilities energy communication macroeconomic revenue
JEL Classification: G11
Suggested Citation: Suggested Citation