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Matthias Knab, Opalesque:

Standish Mellon Asset Management Company writes on Harvest Exchange:

For European institutional investors, US infrastructure bonds may offer an opportunity to lower portfolio volatility and earn attractive yields while also enjoying benefits under Solvency II rules.

From the Erie and Panama canals to the Transcontinental Railroad in the 19th century to the Interstate Highway system and the DARPA projects that created the internet in the 20th, public infrastructure projects have played a central role in the United States' growth.

Over the past quarter-century, however, funding for maintaining and expanding US infrastructure has remained flat or fallen as a share of budgets in many of the jurisdictions that own and manage the country's roads, bridges, water systems, hospitals and other essential public services. Meanwhile the demands placed on this infrastructure by the US's population and GDP growth have kept increasing to the point that the US needs to spend an estimated $3.6 trillion through 2020 to remedy deficiencies in its infrastructure.

President Donald Trump has repeatedly touted his plan to rebuild the nation's neglected infrastructure. But while the White House seeks an expanded federal role in incentivizing projects, his proposals are only intended to supplement the centr......................

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