Stranded Assets, Cold Storage, and Municipal Bonds
The U.S. House of Representatives recently voted to pass sweeping reforms for a $3.5 trillion budgetary blueprint, paving the way for a future budget deal and safety net expansion. In the process of doing so, they also set the stage for a vote on infrastructure reforms (possibly totalling up to $1 trillion) that have already passed the Senate.
In addition to the potential implications of recent infrastructure spending plans, the below papers provide updates on the U.S. cold storage industry, the current state of the municipal bond market, and stranded (or soon-to-be stranded) oil and gas pipeline projects.
President Biden and U.S. Congressional leaders have recently proposed significant infrastructure spending plans. Wellington Management's Macro Strategist provides updates on the themes inherent within these plans and other economic ramifications.
U.S. oil and gas pipeline projects are increasingly turning into stranded assets. This video from the financial times examines the price increases and environmental issues that have led to these outcomes.
This CAIA panel discussion focuses on infrastructure as an asset class, its performance, and its role as a potential inflation hedge.
AEW provides insight into the cold storage, or refrigerated warehouse, segment of the U.S. infrastructure market. These facilities are often used to temporarily house other goods that require a temperature-controlled environment, such as pharmaceuticals or food.
Northern Trust Asset Management describes how federal aid packages and higher tax revenues have created a better-than-expected post-pandemic picture for the U.S. municipal bond market.
Using the February 2021 weather events in Texas as a case study, the Brookings Institution advocates for increased financial disclosures on climate risk.