Insurance companies often prioritize public and private credits to fulfill liability cash flow requirements. Infrastructure debt, as a private credit investment, offers several compelling features that go beyond traditional credit investments:
- Stable and inflation-hedged income
- Unique issuers to enhance portfolio diversification
- Attractive return after factoring in expected loss and cost of capital
To access private infrastructure debt, insurers can employ diverse strategies to customize their exposure through deal structuring and choice of investment vehicles. This paper seeks to explore the methods available that best match an insurer’s distinct financial objectives, risk tolerance, and budgetary limitations.
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Macquarie Asset Management (MAM) is the asset management division of Macquarie Group. MAM is an integrated asset manager across public and private markets offering a diverse range of capabilities, including real assets, real estate, credit, equities and multi-asset solutions.
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[3943974] 10/2024
