EN Switzerland Professional Investor

U.S. Elections 2016

Barings’ investment professionals provide insights on how the U.S. presidential election may impact the fixed income, equities, alternatives and real estate markets.

Infrastructure Debt

Infrastructure spending in the U.S. was one of the issues that both major parties actually agreed upon during the election process. We believe that the U.S. will be embarking on a period of increased fiscal spending in the coming years to update ageing infrastructure. This should provide a boost to economic growth and also result in opportunities for debt providers like Barings to participate in the private financing of some of these projects.

The rebuilding of American infrastructure was an oft-repeated rallying cry during the election process and as such we would expect to see major fiscal spending initiatives announced by the Trump administration. As opposed to a Clinton administration where the focus would likely be on renewable energy as an important domestic agenda, we expect Trump to focus more on conventional energy sources to not only ensure energy independence but to include building out the U.S. capability to export natural gas. For instance, the Keystone pipeline is a project that will likely move forward under his administration. Infrastructure spending associated with defense will also be a likely priority and could include things like housing and hospitals for the military.

Additionally, given Trump’s private market background, we would anticipate a focus on Public Private Partnerships (PPPs) and generally more privatization of infrastructure projects. We see strong support from institutional investors to participate in the financing of these infrastructure projects based on our discussions with infrastructure investors, sponsors, and contractors we work with. Barings’ strong relationships with key stakeholders including project sponsors and contractors may result in increased opportunities to provide private debt financing in the years to come for a variety of infrastructure projects in the U.S. and globally.

 

Emeka Onukwugha, CFA

Managing Director, Barings Global Infrastructure Debt Group

Market Insights

High Yield

We anticipate that high yield issuers will largely weather any short-term volatility ...

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Multi Asset

Trump's victory to have a profound effect on global markets ...

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Emerging Markets Debt

We believe the environment remains a healthy one for emerging markets and we continue to see ...

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Multi-Strategy Fixed Income

The U.S. economy remains in reasonably healthy condition and corporate earnings are fairly robust ...

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Private Equity

We don't expect any one political event, such as the U.S. Election or Brexit, to impact our portfolio ...

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Real Estate

At the end of the day, the fundamentals underlying the U.S. real estate market are sound ...

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Global Equities

The investment case for strong companies is not dependent on the president ...

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Infrastructure Debt

Infrastructure spending in the U.S. was one of the issues that both major parties actually agreed upon...

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Structured Credit

Fundamentals are solid & the direct impact of the election are somewhat limited

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Small Cap Equities

Our focus remains on the fundamentals, following a Trump win ...

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Emerging Market Equities

Uncertainty is the big takeaway from Trump's win ...

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Asian Equities

Despite a change of U.S. leadership our outlook for Asia remains strong ...

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