The Pricing of Private Infrastructure Debt: A Dynamic Approach and Comparison with Corporate Debt
Apr-2019
This paper examines the drivers and evolution of credit spreads in private infrastructure debt. We ask two main questions: Which factors explain private infrastructure credit spreads (and discount rates) and how do they evolve over time? Are infrastructure project finance spreads and infrastructure corporate spreads driven by common factors? . . . Read More
Infrastructure Credit Risk Research
Debt is an inherent part of infrastructure investment and credit risk modeling and estimation are necessary to understand the risk profile of an investment, even on the equity side, which can be “wiped out” in the event of project default.
Our research on credit risk in infrastructure project finance leverages the unique infraMetrics database to understand cash flow dynamics and the risk of default and losses given default.