CEPRES today released an analysis demonstrating how Private (unlisted) Infrastructure can act as a Hedge for Corporate Bonds, whilst significantly outperforming on returns. Using the CEPRES Platform to analyze thousands of privately held Infrastructure assets, CEPRES found that since 2002 there was a beta (co-movement) to the US Corporate Bond market of -0.9 and an alpha of 19.5%.
The results were derived from the new CEPRES Platform ‘Alpha Beta Framework’ that uses regression analysis to calculate the risk-adjusted return (alpha), together with the correlation (beta) to an underlying market – in this case, US Corporate Bonds. This new feature is groundbreaking and brings private market investing to the same level as public market trading because previously it was so challenging to perform this type of analysis based on reliable data.
