Utilities & Regulated Infrastructure

Investment-grade utilities and infrastructure issuers.

The utilities and regulated infrastructure sector presents compelling relative value for fixedincome portfolios seeking robust cash flows underpinned by essentialservice asset bases. This screening highlights an asset class balancing defensive cash generation against historically elevated nominal yields across global jurisdictions. Sovereignbacked and quasisovereign issuers offer attractive creditrisk dispersion, exemplified by Comisión Federal de Electricidad (CFELEC) notes spanning the long end of the curve with yields clustered between 7.58% and 7.71%. These Mexican utility issues provide solid investmentgrade carry for institutional accounts willing to absorb emergingmarket sovereign adjacency. Higherbeta segments of the screen feature notable outlier opportunities, such as Enel Chile’s shortdated paper offering an exceptionally wide yield to worst, alongside longdated corporate infrastructure debt from Brookfield Infrastructure Partners (BIP) yielding 7.68%. These selections allow portfolio managers to dial duration exposure while capturing generous yield premiums over sovereign benchmarks.

Results are limited to USD bonds with an amount outstanding of at least USD 200MM.