U.S. Infrastructure Update: August 2021

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. 

Implications of the Biden infrastructure plan (Wellington Management, Aug 2021)

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.

Video: End of the Road for America's Oil and Gas Pipelines? (FT, 2021)

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.

Webinar: Fundamentals of infrastructure and current market update (CAIA, 2021)

This CAIA panel discussion focuses on infrastructure as an asset class, its performance, and its role as a potential inflation hedge.

Cold Storage: Crucial property infrastructure (AEW, 2021)

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.

U.S. States Municipal Bonds Outlook 2022 (Northern Trust AM, Jul 2021)

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.

What We Can Learn from the Texas Power Crises (Brookings, 2021)

Using the February 2021 weather events in Texas as a case study, the Brookings Institution advocates for increased financial disclosures on climate risk.