Real assets investing infrastructure debt securities

Infrastructure debt securities, part of the real assets investing spectrum, delivered 4.8% average yield over the past quarter. Reduced default risk and secured collateral make them attractive for risk-averse investors seeking capital preservation with real income. Aniket Shah, managing director and global head of sustainability and transition strategy at Jefferies Financial Group Inc., says the fact that investors can measure the real-world effect of impact investing gives it the potential to be more powerful than basic screening for ESG (environmental, social and governance) risk. “Actually, they just pulled back a couple points in the last quarter from the stock market and from real estate,” Sonnenfeldt told CNBC, noting that the average Tiger 21 member controls more than $100 million [1]. Real assets investing is gaining strong traction in 2024 as inflation-adjusted returns from equities outperform expectations. The S&P 500 Real Assets Index has risen 4.7% Q2-to-date, supported by energy and infrastructure stocks. Analysts project continued upside given robust cash flow metrics and low correlation with traditional equity sectors.