On Jun 17, 2011, at 12:13 PM, Ferenc Molnar wrote:
> Not sure if I understand this but I find this terrifying. Are the banks planning on bundling and securitizing these "infrastructure funds", privatized municipal and state bonds, in the same way as they did mortgages?
To some degree, but I don't think that's the major appeal. As the prospectus said, these are monopoly assets with stable income streams usually backstopped by governments. So low risk, decent return. Capital has been lusting after privatized infrastructure since at least the 1980s.
Doug