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 JFRM  Vol.5 No.3 , September 2016
Risk Component Based Infrastructure Debt Valuation Analysis and Long-Term Investment
Abstract:
Long term financing to infrastructure and mobilization of private long term capital has been recognized as a key agenda in advancing the global economic development. There are several barriers in infrastructure financing and big gaps between expectation and reality. A highly pronounced barrier is the lacking of capacity of investors to price risks in a structured manner. This paper has discussed component-based infrastructure valuation analysis and modeling blocks. The component-based valuation mechanism is very useful for issuers and investors to categorize, analyze and price specific risks transparently and can provide a basis for structuring the risks on an ex-ante basis so as to make project investments suitable for investors of different risk preference.
Cite this paper: Wang, C. and Kumar Sundararajan, S. (2016) Risk Component Based Infrastructure Debt Valuation Analysis and Long-Term Investment. Journal of Financial Risk Management, 5, 122-148. doi: 10.4236/jfrm.2016.53014.
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