We do not believe that the credit crisis has impacted the scope or the potential of the infrastructure opportunity in the medium-to-long-term. In the short-term the lack of availability of financing may delay and impede infrastructure projects but this does not change the underlying supply and demand factors supporting this asset-class.
On the contrary we believe that the credit crisis will ultimately prove beneficial for private infrastructure returns as it has alleviated the ‘excess capital problem’ that built up in 2007 - when significant equity fund raising had occurred, out-pacing the growth of the opportunity set at the time.
Friday’s Settlement: 2902 (- 82) UPDATE: NO CHANGE: For the last sixteen weeks 3010 (our proprietary black resistance neck- line) has acted as the key upside pivot, and price action remained under that point (on a close basis) for this entire period. 3010 remains the pivot between a bullish and bearish market. It (3010) has worked like magic. Providing resistance to the tick. Eight days ago the market once again failed at that region, and is now suffering.