The impact of rising interest rates
After a number of false starts, there is now genuine optimism that economic growth is at last picking up in the developed world. For investors this is good news. Higher growth suggests improved cash flows for most businesses and increasing investment returns on average. However, by the standards of the past, economic growth in the leading economies will be relatively modest. Inflation and bond rates are also expected to increase in the higher growth environment, but what does this mean for the infrastructure asset class?