Stafford Infrastructure Diary - Inflation protection from Infrastructure: getting under the hood

In this Stafford diaries edition, we will discuss the current macroeconomic volatility, with a particular focus on inflation and interest rates, and their impact on the infrastructure asset class.

We will illustrate line-by-line how inflation impacts cash flow statements and what implicit and explicit protection mechanisms are helpful against various forms of inflation.

We will also put theory into practice by looking at actual inflation correlation for 294 assets from SISF funds; we will analyze the effect of the core-rating of an asset, its sector and overall diversification on its ability to adjust to inflation.