At the same time, he warned that although this asset class was not risk-free and its expected higher returns for social infrastructure above bond yields represented a risk premium, this left managers with plenty of options for mitigation. Additionally, this asset class offered a promising outlook, given the low-rate environment and the governments taking a more central role in infrastructure funding and provision, sidelining the private sector. However, according to Savage, in the longer term over the coming years this shift would lead to greater public-private partnerships. “Furthermore, although the cost of borrowing may not increase dramatically for governments into the near future, they may have a keen eye to their existing debt burdens in the wake of COVID-19 stimulus, and as a result may be less willing to have the full cost of new projects on their balance sheet,” Savage said.