Question
Why is demand for many infrastructure assets relatively stable across the business cycle?
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Answer
They provide essential services with relatively inelastic demand.
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Question
What feature gives infrastructure investments inflation protection?
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Answer
Contractual or regulated rate escalators linked to inflation.
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Question
Why do infrastructure assets often appeal to liability-driven investors such as pension funds?
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Answer
They offer long-duration cash flows that match long-term liabilities.
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Question
How does infrastructure generally differ from real estate in sensitivity to the economy?
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Answer
Infrastructure is more stable; real estate is more cyclical.
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