CBB - Why Units of Brookfield Infrastructure Slumped Nearly 29% in March
Units of Brookfield Infrastructure Partners (NYSE: BIP) plunged 28.8% in March, according to data provided by S&P Global Market Intelligence. The main issue weighing on the company was fears of a global recession.
The COVID-19 outbreak is forcing governments around the world to shut down their economies to slow the spread of the pandemic and its impact on their healthcare systems. That's causing fewer vehicles to move through toll roads and fewer ships traveling to ports, which will have some effect on Brookfield Infrastructure's transportation segment.
However, the company previously estimated that a global recession would only affect its cash flow by about 5% thanks to the strength of its contract profile and the critical nature of its infrastructure.