Utilities & Regulated Infrastructure

Investment-grade utilities and infrastructure issuers.

The Utilities & Regulated Infrastructure theme screens ten USDdenominated investmentgrade issuers, predominantly Mexican, with yieldstoworst clustered between roughly 7.5% and 7.9%. That yield level offers a meaningful pickup over most other investmentgrade sectors, with the regulated, essentialservice nature of the cash flows supporting credit quality. Comision Federal de Electricidad (CFELEC) dominates the list, and its 2052 bond yields 7.763% at a BBB rating, a sizeable premium for a longdated, statelinked utility credit. The 2045 and 2042 CFELEC lines, yielding 7.718% and 7.67%, offer similar exposure at different points on the curve. For investors seeking shorter duration, the Empresas Publicas de Medellin (EEPPME) 2031 note yields 7.543%, which provides a more contained maturity profile without sacrificing much yield. Within the IENOVA curve, the 2048 bond at 7.524% offers a comparable yield with a longdated BBB rating. BRKHEC 2055 carries the highest headline yield at 7.875%, but its BB rating places it below the investmentgrade core of the theme, so it warrants closer credit review than its peers. Relative value across the group will therefore depend on how investors weigh the incremental yield against rating and duration risk.

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