Investors also have reason to celebrate at the US Open

The US Open, the fourth and final Grand Slam tournament of the year, is currently taking place in New York. This has a special reputation among Swiss investors.

Djokovic will be on the court. Also Jannik Siner, Carlos Alcaraz, Alexander Zverev, Daniel Medvedev … the best in the world were announced from this week US-Open to be part of the party. Only Rafael Nadal had to cancel due to injury.

The venue: Arthur Ashe Stadium, built in 1997, the largest tennis stadium in the world. The court offers space for 23,771 spectators.

A popular investment among Swiss pension funds

Many investors in this country are also familiar with Arthur Ashe Stadium. BNY Investments it is included in his offer. “Infrastructure is particularly popular with pension funds because such investments run over a longer period of time and generate good returns,” said Martin Reesresponsible for business in Switzerland, Liechtenstein and Austria.

Infrastructure investments in the US have a long tradition. As early as 1812, the city of New York issued a “general obligation bond” to finance a canal; This was the first municipal bond in America.

Arthur Ashe Stadium in New York (Image: Shutterstock)

Ideal for propagation

The model was captured. Today, every state issues such municipal bonds that serve projects for the public good. The largest distributors include California, New York, Texas and Florida.

“In many cases, these bonds are tied directly to the infrastructure’s revenue streams or are supported by individual state tax revenues. “They are also an excellent way for investors to diversify a portfolio without sacrificing yield,” he said. Jeffrey BurgerSenior Portfolio Manager at BNY Investments.

One such project is the location for the US Open. The stadium was financed in 1994 through a $150 million municipal bond issue through the New York City Business Development Corporation, along with approximately $112 million in equity grants from the USTA NTC, a non-profit organization. Other parts of the 1994 bond issue include the construction and renovation of additional tennis courts within the complex, parking and support facilities.

Ability is misunderstood

In Burger’s view, despite its long history, the US municipal bond market still suffers from relatively weak research, providing ample value potential for global investors. “Failures are rare. “Historically, the asset class has been resilient to fluctuations in the broader market,” he says. Municipal bond issuers could fulfill their obligations to bondholders because they are often public entities that have a real monopoly and provide services with inelastic demand.

“Due to the increase in the US federal budget, it is likely that the government will continue to issue more government bonds, and this cannot be good news for the US Treasury market in the long term . With US municipal bonds, investors are choosing an asset class that offers significantly better credit ratings, comparable returns and a lower risk of default than many investment grade corporate bonds,” he says. confirmation.