The Road Less Traveled

DoubleLine Portfolio Manager Andrew Hsu looks at macro issues impacting the infrastructure debt market in this segment of the Infrastructure Debt webcast. Mr. Hsu begins by reviewing factors influencing the broader economy with an eye toward recession signals, including consumer resilience and confidence (1:04), unemployment (2:30), GDP forecasts (4:03) and tightening lending standards (5:33), among other topics. Mr. Hsu then turns to expectations for how infrastructure debt will hold up in a slowing economy (6:22), including a historical look at default rates. He also discusses why infrastructure debt should be considered for investor portfolios with a breakdown of growth prospects for various sectors of the infrastructure market, including oil and natural gas (7:08), renewable energy (9:27), grid modernization projects (10:12), data center and telecom infrastructure (13:35) and transportation (15:10). Mr. Hsu concludes by answering questions on allocation (16:34), particularly to the transportation sector, and the outlook for fixed income in a period of rising interest rates (17:30).