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Infrastructure Performance Amid Rising Bond Yields

March 4, 2022

 

Charles Hamieh joins Matt Bushby to discuss where we are in the current tightening cycle, rising bond yields’ likely impact on infrastructure valuations and what unique characteristics of infrastructure determine its performance in periods of elevated uncertainty.

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Establishing Conditions for Stronger Future Earnings
Global Infrastructure Value 3Q26: Utilities generally recover prudently incurred costs such as higher interest rates as regulators recalibrate allowed returns to reflect prevailing financing conditions.
Utilities Look Attractive as Rates Rise
Global Infrastructure Income 3Q26: Regulated rate-base growth, electrification, grid investment and data center demand support infrastructure, with inflation-linked tariffs and contractual escalators helping preserve real asset values over time.
Megaprojects: A Cross-Sector Industrial Capex Cycle
An industrial capex cycle for LNG infrastructure, semiconductors, manufacturing reshoring and grid modernization remains in its early stages.
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Infrastructure Positive but Trails in Risk-On Quarter
Global Infrastructure Income 2Q26: Listed infrastructure made positive gains, led by user-pays assets such as airports and rail in a risk-on environment of easing geopolitical tensions.
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  • Past performance is no guarantee of future results. Copyright © 2022 ClearBridge Investments. All opinions and data included in this commentary are as of the publication date and are subject to change. The opinions and views expressed herein are of the author and may differ from other portfolio managers or the firm as a whole, and are not intended to be a forecast of future events, a guarantee of future results or investment advice. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Neither ClearBridge Investments, LLC  nor its information providers are responsible for any damages or losses arising from any use of this information.

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