wall street actively pursuing infrastructure investment

Although President Trump’s $1.5 trillion infrastructure initiative has yet to make it out of Congress, investors are increasingly putting their dollars into such infrastructure-related entities as rail lines, gas and oil pipelines, and even telecom assets.

So far this year, total infrastructure investment stands at $68.2 million, up from $66.2 million for the entire year of 2016.

“Institutional investors, such as pension funds, have been allocating more money to infrastructure,” notes the Wall Street Journal, “attracted by its reputation for steady returns, which typically fall between safer fixed-income securities and private equity.”

According to the alternative assets website Preqin.com, more than 600 infrastructure investment deals were inked in the U.S. in the second quarter of this year.

Analysts say that although there are not currently enough projects to satisfy investors, prospects are expected to improve next year as more and more gas and oil companies take on pipeline construction projects.

Trump’s infrastructure framework, introduced in February, was for all purposes dead by May after lawmakers announced their opposition to the administration’s emphasis on funding from the private sector, as well as joint investment between Washington and state and local governments.

There has been speculation that if the Democrats win control of the House in the November elections, one rare area of agreement between the party and the White House could be seen in a renewed effort to pass infrastructure legislation.

By Garry Boulard

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