BIPC - Brookfield Infrastructure: Capitalizing On Rate Cycle

2024-06-26 21:45:40 ET

Summary

• Brookfield Infrastructure Partners is a reliable investment option due to its diverse portfolio of infrastructure assets.
• The company has a strong track record of generating stable cash flows and delivering consistent returns to investors.
• Brookfield Infrastructure Partners is well-positioned to benefit from the upcoming fed rate cycle.

Investment Thesis

Brookfield Infrastructure Partners ( BIP ) and its sister corporation, Brookfield Infrastructure Corporation ( BIPC ) have seen their share prices decline by roughly a third since the Federal Reserve started its monetary tightening in early 2022. BIP/BIPC's particular sensitivity to interest rates stems from high debt levels and substantial capital requirements, but equally important, a predominantly institutional shareholder base executing on income-oriented, low-risk mandates. As interest rates rose, those institutions saw alternative opportunities in the Treasury and bond markets. ...

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