Infrastructure Investing

Infrastructure investing has exploded onto the worldwide scene. The fact is that real money will need to be spent on real projects¿which will present real opportunities for stable, long term returns. But infrastructure assets have unique characteristics, and the investments and funds that will likely rise up must be suitably structured to serve investor needs.Financial markets researcher Rajeev Sawant has been analyzing infrastructure investments, funds, and project financing programs for nearly five years, and now, with this book, he presents information that will be invaluable to lenders, pension funds, endowments, insurance companies, investment funds, rating agencies, and even governments.Written with the serious professional in mind, this reliable resource focuses on infrastructure s economic characteristics, highlights the rewards and perils that infrastructure investors face, and addresses the strategic threats they must mitigate. Chapter by chapter, this informative guide: Examines the characteristics of debt versus equity funding by applying the latest theoretical capital structure research to infrastructure funding Discusses project finance and the strategic use of capital structure as a risk mitigation tool Explores infrastructure asset valuation issues and the return characteristics of a project finance infrastructure bond portfolio Outlines infrastructure risk factors, in particular, the threat of counterparty hold up and the incentives this threat engenders Compares existing equity based infrastructure indices to broad indices for equities, bonds, and commodities in terms of risk, return, and correlations Looks at two case studies that did not live up to the promise of infrastructure and applies the frameworks developed throughout the bookFor the next decade, worldwide economic growth and increased employment, as well as investment returns, will come from infrastructure projects. This book will help you understand today s dynamic infrastructure asset class and enhance the returns you are able to obtain from it¿all while improving the quality of life for people around the globe.