2016 Q4 Newsletter

In writing this introduction it feels like a lot has happened in such a short time.  Despite commentators calling for economic armageddon upon a Trump victory, markets rallied. In the days to follow the ‘Trump Reflation’ trade would begin, with the Dow and S&P500 reaching all time highs.  For bonds rates, the sell-off has been spectacular – the Aussie 10 year has moved almost 100 bps from 1 October to 16 December.  Not even the outcome of the Italian referendum could dent enthusiasm – Deutsche Bank equity has rallied over 60%, despite no significant change in its underlying fundamentals – It’s Christmas and all is well!

This quarter has seen a lot of infrastructure transactions in both the debt and equity space.  In this quarter’s newsletter we have two articles, the first picks up on the recent moves in base rates and considers the relative sensitives across different infrastructure sub-sectors. The second article looks at asset allocation within Member Investment Choice (MIC) options with a particular focus on conservative options.   

We’d like to thank all the people that have contributed to the many topics we’ve covered this year – we certainly value and appreciate all views, and to those people who proofed particular topics we’d like to extend an extra big thanks!  From the team here at Infradebt, we wish all of you a merry Christmas and a safe, relaxing break ­ enjoy the good times that this time of year brings!  

See pdf for full newsletter.