McGraw Hill Financial President and CEO Douglas L. Peterson to Propose Ways to Close Infrastructure Financing Gap
PR Newswire Association LLC |
In an address to 300 business and government leaders at the
The
In his speech,
"Fortified by additional understanding, transparency, predictability, and certainty, we believe nonbank institutional investors can bridge the coming
Highlighting the need for alternative sources of financing in
In order for the institutional investor approach to succeed, policymakers and investors must work together in three key areas, according to
- Standardizing Project Finance Structures And Enhancing The Transparency Of Project Debt
Given the magnitude and long-term illiquidity of infrastructure investments, transparency is especially important to the development of long-term project bond markets. Greater standardization of transaction structures enhances market visibility and predictability.
- Streamlining Regulatory Regimes And Minimizing Political & Regulatory Risk
Inconsistent or inappropriate regulatory regimes can impede further development of institutional infrastructure financing. For example,
Europe's Solvency II framework doesn't account for the favorable default and recovery characteristics of infrastructure project finance. This could discourage and even penalize insurers for holding long-dated, low- to-mid-investment-grade project debt. Further, enshrining independent, stable, and transparent regulatory frameworks in law reduces the risk of subsequent adverse policy changes impacting transactions.
- Enhancing Credit Structures And Reducing Construction Risk
With weakened credit quality of some public sector counterparties, the infrastructure finance market has struggled to find support structures that meet both equity investors' rate of return requirements and investor demand for higher-rated bonds. This problem highlights the growing importance of robust public-private partnerships – or “P3s,” which include some level of private investment and a transfer of risk to the private party.
About
Investor Relations: http://investor.mhfi.com
Get news direct from
http://investor.mhfi.com/phoenix.zhtml?c=96562&p=rssSubscription&t=&id=&
Contacts:
News Media:
(212) 512-2825
[email protected]
(212) 512-3151 (office)
[email protected]
SOURCE
Wordcount: | 753 |
Louisville’s Van Zandt, Emrich & Cary Celebrates 100th Anniversary
Sen. Murphy takes to street to spread word about Affordable Care Act
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News