Aircraft leasing has been popular with institutional investors but faces a crisis like no other as the airline industry faces bankruptcy.
Two of Australia’s largest funds, AustralianSuper and UniSuper, have booked significant devaluations of their unlisted asset portfolios in response to the coronavirus crisis.
Highly leveraged midstream companies are likely to default on loans, but natural gas, which has not seen commodity price volatility like oil has, is one bright spot.
Airports in Australia have been hit hard by coronavirus, just as in almost every other country. How bad is the situation and what will Australian asset managers do to mitigate the impact?
The measures which, the government is adopting in light of the coronavirus pandemic, amount to $448.5m and are aimed at helping airlines and toll road users.
Transport assets are likely to be hit the hardest from the coronavirus crisis, although much will depend on the contracts behind the assets.
Heavily invested legacy vintages might suffer more than funds in market, with the jury still out on whether this crisis will be sharp and short like the GFC, or sharp and longer-lasting running through various cycles.
Drawdowns could enable managers to pre-empt liquidity issues arising from the pandemic but may compound the problem for certain LPs.