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Investors need to tread with caution as uncertainty surrounds the Federal Reserve’s next move.

The advent of whole-business securitization and the creation of a liquid market in project-related debt has opened investors’ eyes to the rewards available in infrastructure. Governments’ desire for off-balance-sheet funding has also boosted the supply of suitable investments. But what makes infrastructure different? How do you buy it, sell it and manage it?

UBS has bought Banco Pactual, one of Brazil’s leading financial services firms. The Swiss bank will pay $1 billion upfront and as much as a further $1.6 billion in five years, subject to performance conditions. In addition, UBS will establish a retention pool of up to $500 million in UBS shares for Pactual and UBS employees payable beginning on the fifth anniversary of closing. Pactual has a highly successful proprietary trading desk, a strong franchise in equity capital markets and a sizeable asset management business. Earlier this year it broke off negotiations over a possible joint venture with Goldman Sachs.

Andy Abrahams, you’re rubbish...

The listed infrastructure fund, which is common in Australia, is gaining traction in Asia, with two new structures hitting the market in recent weeks.

“It’s so bloody liquid, it’s not even funny.”

Overvalued IPOs give cause for concern. Some bankers are becoming wary of damaging their reputation with rushed or over-valued Russian IPOs. Two banks dropped out of a deal last month and some analysts urge that caution be exercised in further IPOs.

The Chinese property company impressed investors with its deal and its story.

Investment banks are thinking of setting up their own alternatives.

The ability of the US to run a high current account deficit rests on a widespread belief that inflation and the cost of capital will remain low. But the conditions that underpin the deficit and the dollar’s role as the principal source of global capital are unlikely to be sustained for long.

Despite its size and maturity, the covered bond market is fast changing. New countries, new asset classes and new issuers vie for investors. But does the conflict between regulators’ desire for quality and consistency clash with investors’ needs for yield and diversification?

Maverick leader opens arms to international and national investors.