A safe retreat from risk
When Standard & Poor’s warned of the dangers facing the infrastructure finance market from over-leverage, bankers were peeved. Why was S&P attacking a fundamentally safe market? But, danger or not, the agency is right to point out that structures will have to get more conservative in the coming months.
Danger is not a word that immediately springs to mind when thinking about infrastructure finance. Stable cashflows, detailed due diligence, safe assets: how could infrastructure be anything but safe?
One way would be if the definition of infrastructure finance changed, which it has.The market has broadened to ...