Utilities & Regulated Infrastructure

Investment-grade utilities and infrastructure issuers.

The utilities and regulated infrastructure sector currently offers compelling riskadjusted carry for institutional portfolios, anchored by essentialservice cash flows and predictable operational models. Across our topscreened USDdenominated universe, yieldstoworst are clustering tightly in the 7.55% to 7.72% range, presenting an attractive entry point for investors seeking highsingledigit returns within defensive sectors. French utility major EDF captures the high end of the yield spectrum, with its 9.125% paper trading at yieldstoworst of approximately 7.71% to 7.72%, offering aggressive income generation for crossover and highyield allocations. Meanwhile, investmentgrade Latin American infrastructure and power issuers—such as Comisión Federal de Electricidad (CFELEC) and FIEMEX—anchor the core of the screen, with CFELEC issues providing robust mid7% yields backed by sovereignlinked balance sheet strength. Longduration discount instruments screen prominently among Mexican power names, exemplified by IENOVA’s 4.75% 2051 maturity trading at a deep discount near 69.03 to yield 7.55%, alongside solid intermediate options like COXMEX’s 7.125% 2032 offering a 7.60% yield near par. This combination of doubledigit price appreciation potential on discounted structural long bonds and steady highcoupon carry provides relativevalue portfolio managers with versatile deployment angles across the curve.

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