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.
Calibrating Credit Risk Dynamics in Private Infrastructure Debt
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.
An industry standard for the infrastructure asset class
From ad hoc to world class Today infrastructure investors use ad hoc benchmarks for unlisted infrastructure investment. They know that’ snot good enough. At EDHECinfra, we are establishing an industry standard for the infrastructure asset class. And we’ve made significant process. We are establishing a framework for data collection and developing asset pricing techniques to measure the risk adjusted performance … Read More
Building benchmarks for infrastructure investors: a long but worthwhile journey
This blog was originally published on the World Bank’s PPP Blog Website. It’s past time for proper infrastructure benchmarks The Argentinian presidency of the G20 opens this month. All the signs indicate that it will be marked by a focus on infrastructure investment. Already, the G20 and OECD have announced a wide-scale data collection initiative for the purpose of creating … Read More
The Rise of Fake Infra: The Unregulated Growth of Listed Infrastructure and the Dangers It Poses to the Future of Infrastructure Investing
In this position paper, we document the dangerous rise of the so-called listed infrastructure asset class, an ill-defined series of financial products that initially targeted retail investors and now increasingly reaches institutional investors, which now represent close to a third of the sector.
You Can Work it Out! Valuation and Recovery of Private Debt with a Renegotiable Default Threshold
We extend the structural credit risk model of illiquid debt developed by Blanc-Brude and Hasan (2016) to incorporate the step-in option of senior creditors in project financing and model its impact on the valuation and risk profile of senior unsecured project debt.