Insights

Opinion pieces from the team, and uses cases covering private markets, infrastructure investment, climate change, social risk, and more.

Featured image for “Infrastructure prices don’t show a bubble”

Infrastructure prices don’t show a bubble

Mar. 01, 2019
This blog was initially published in top1000funds.com. No asset is an island… Infrastructure equity prices do not exist in a vacuum. Analysing hundreds of transactions over the last 15 years, we found that they are driven by systematic risk factors, which can be found across asset classes. In other words, markets did process information rationally and average prices did reflect
Featured image for “New EDHECinfra study shows that ‘peak infra’ may be behind us”

New EDHECinfra study shows that ‘peak infra’ may be behind us

Jan. 30, 2019
New EDHECinfra research documents the factors behind the evolution of unlisted infrastructure prices over past 15 years. Common risk factors found in numerous asset classes explain the evolution of unlisted infrastructure secondary market prices. That’s the finding of a new paper drawn from the EDHECinfra /LTIIA Research Chair. Interestingly, the paper also shows that that, after a long period of
Featured image for “Which Factors Explain Unlisted Infrastructure Asset Prices? Evidence from 15 years of secondary market transaction data”

Which Factors Explain Unlisted Infrastructure Asset Prices? Evidence from 15 years of secondary market transaction data

Jan. 08, 2019
This paper drawn from the EDHECinfra /LTIIA Research Chair shows that common risk factors found in numerous asset classes explain the evolution of unlisted infrastructure secondary market prices. It also shows that after a long period of prices increases, “peak infra” may already be behind us.

Infrastructure: Calling time on borrowed definitions

Dec. 12, 2018
This blog was originally published in IP&E Real Assets. It’s time to stop saying apples are just round pears Infrastructure as an asset class has evolved over the past decade at a speed that has brought its own challenges. One of those is taxonomy. As it has expanded and grown in popularity, it has borrowed classifications and definitions from private
Featured image for “Selecting Reference Indices for the Infrastructure Asset Class: A survey of investor preferences and the EDHECinfra families of infrastructure indices”

Selecting Reference Indices for the Infrastructure Asset Class: A survey of investor preferences and the EDHECinfra families of infrastructure indices

Feb. 11, 2018
We examine the results of a large survey of infrastructure investors and their preferences for the segmentation of the infrastructure asset class and set out a taxonomy of unlisted infrastructure investment indices and benchmarks that will now be used to compute all EDHECinfra indices, sub-indices and custom benchmarks.
Featured image for “Calibrating Credit Risk Dynamics in Private Infrastructure Debt”

Calibrating Credit Risk Dynamics in Private Infrastructure Debt

Feb. 07, 2018
Recent research has demonstrated that structural credit risk models are capable of explaining the credit risk process for private, illiquid debt. This article extends this literature by proposing a simple and intuitive calibration approach using Bayesian inference to capture the nonlinear dynamics of debt service cover ratios.