Infrastructure Capital Advisors (InfraCap or ICA)

Investment-grade spreads at 88 bps sit near multi-decade lows. The 20-year average is 148 bps. Selectivity matters more than ever when compensation is this compressed.

Treasury yields fell while credit spreads widened in February. That divergence — safety buying alongside rising risk premiums — signals mixed risk appetite across fixed income.

HY credit spreads widened from 264 bps in January to 312 bps by late February. Still well below the long-term average of 520 bps, but the direction matters.

Chevron is planting flags in new basins: Libya awarded it an exploration license in the Sirte S4 Basin as the country tries to pull in foreign capital and rebuild output potential. Source: Reuters

AI clusters are only as fast as the network between GPUs. Cisco launched its Silicon One G300 switching chip and new systems aimed at hyperscale AI data centers, taking direct aim at competitors in the networking stack. Source: Economic Times

Unemployed workers in the United States now outnumber job openings by almost one million, the most since March 2021. Source: Statista

Portfolio pruning is strategy, not just housekeeping. Coca-Cola is phasing out frozen products in the US and Canada, shifting its focus toward higher-demand categories such as reduced-sugar and premium offerings. Source: MMR

The US economy added 130K nonfarm payrolls last month, a jump from the downwardly revised 48K in December, and far above forecasts of 70K. Source: Trading Economics

Small Caps and Macroeconomic Shifts: Three Catalysts for a Breakout Read here: infrastructurecapital.substack.com/p/small-caps-a…

Why Midstream Cash Flows Hold Up When Energy Prices Don’t Read here: infrastructurecapital.substack.com/p/why-midstrea…

Fed rhetoric matters more for small caps than large caps. Lower financing costs can quickly improve cash flow for firms that rely on bank lending, often setting the stage for early-cycle outperformance. Source: Infrastructure Capital

Why are long-term yields staying elevated? Heavy global bond issuance, sticky inflation, and shifting policy signals abroad have pushed term premiums higher, even with rate cuts on the table. Source: Infrastructure Capital | Trading Economics

For midstream MLPs, throughput matters more than oil or gas prices. Even after prices retreated from 2022 highs, U.S. production and pipeline volumes continued to reach record levels. Source: Infrastructure Capital

Portfolios heavily concentrated in mega-caps don’t require a full rotation to impact small caps. Even modest reallocations toward underowned segments can move the needle. When sentiment shifts, it often does so quickly. Source: Infrastructure Capital

Small caps are trading at a meaningful discount to large caps across traditional valuation metrics. In prior cycles, wide valuation gaps often preceded sharp rebounds once market breadth improved. Source: Infrastructure Capital

Energy prices can swing sharply. Midstream cash flows usually don’t. Pipeline and storage operators generate revenue from volume moved, not from spot prices, helping to stabilize cash flow across commodity cycles. Source: Infrastructure Capital

US economic sentiment improved to its highest level in six months, with the RealClearMarkets/TIPP Economic Optimism Index rising to 48.8 this month, beating expectations of a more modest 47.9. Source: Trading Economics

US logistics accelerated in January, with the Logistics Manager’s Index hitting 59.6, the highest reading in seven months, and a significant bump up from 54.2 in December. Source: Trading Economics

Treasuries Under Pressure: What This Means for Income-Focused Portfolios Read here: infrastructurecapital.substack.com/p/treasuries-u…

Citi’s Q4 showed dealmaking is back: investment banking fees jumped, and services stayed resilient. Markets reward companies that earn across cycles. Source: Reuters