Infrastructure: How sustainable are yields?

In today's low yield environment, real assets such as infrastructure are particularly sought after. This is thanks to their ability to provide inflation-linked, relatively attractive risk-adjusted returns, with a low correlation to the economic cycle, along with attractive cash flow and income yield. Our view is that yields can be sustainable if rates do not rise drastically. Sharply rising interest rates are a risk investors should be aware of when considering investing in the asset class. However, investors' interest and capital flows into the sector remain significant. Any gradual ri...