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Memos from Howard Marks: Ruminating on Asset AllocationBrookfield's Public Securities Group sees a compelling opportunity.
Brookfield's Public Securities Group sees a compelling opportunity in the debt of infrastructure companies that form the backbone of the global economy. Infrastructure debt is a growing asset class powered by tailwinds to infrastructure growth—or the “Three Ds”—the megatrends of decarbonization, digitalization and deglobalization. Through 2040, public and private entities are expected to spend nearly $80 trillion to modernize utilities as well as build, expand and improve essential energy, data and transportation infrastructure. At the same time, the unique characteristics of infrastructure enable infrastructure debt to offer several potential investment benefits to portfolios.
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