A safe retreat from risk

10 Sep 2007

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 ...

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