SEQI: 8% dividend yield, discount to NAV, and infrastructure debt outperforms corporate credit

Sequoia Economic Infrastructure Income Fund (LSE: SEQI) makes loans to infrastructure companies and projects in developed markets, generating what SIMCo head of portfolio management Steve Cook describes as a strong, steady income with a stable net asset value. Cook explained to Proactive’s Stephen Gunnion that because SEQI lends rather than owns, it avoids the full risks of equity investing, while infrastructure as an asset class has historically shown low correlation to broader markets and tends to outperform during periods of turbulence such as recessions or geopolitical shocks. Cook highlighted Moody's data showing that credit losses in infrastructure are less than half those seen in comparable corporate lending over a long period of time. He contrasted this with general corporate credit markets - including high yield bonds and leveraged loans - where spreads are currently in the tenth percentile of all-time expensive levels, and some markets are in the first percentile, meanin...