Take note: Finding opportunity in mispriced corporate hybrids
Fast reading For non-financial corporate hybrids, fundamentals still matter. The main driver of sub-senior spread is extension risk, as coupon deferral risk is structurally low and early call risk is often manageable. Yet extension risk is often mispriced during market sell-off, creating structural alpha. We are buyers of extension risk premium when it exceeds >10% […]
Chemical sector under scrutiny in EOS’s Q1 Public Engagement Report
Fast reading How the hard-to-abate chemical sector can play a role in the low carbon transition. Regulation has failed to keep pace with the digital revolution, leading to social harms that pose risks for companies, investors and individuals. Addressing social inequities, including those exacerbated by the pandemic, can help to create long-term value for investors. […]
‘People can focus so much on risk they can overlook opportunities’
The sell-off in Chinese stocks this year as investors fret over the impact of the country’s zero-Covid policy and the risks presented by slowing growth mean that Chinese shares are trading at discounts unseen for more than two decades, according to fund managers at Federated Hermes. Weakening sentiment has pushed the Hang Seng Index down […]
Market snapshot
A glimmer of hope amid China’s lockdowns?
Fiorino: 4.669 reasons why car-tech could outpace insurers
Genius-at-large Mitchell Feigenbaum was always on the move. But the wandering physicist stayed still long enough in the early 1970s to uncover a fundamental truth about the inexorable path of certain systems as they journey from apparent stability to chaotic behaviour: chaos approaches at a surprisingly regular rate of acceleration. As discussed in previous editions […]
The demise of ESG is much exaggerated
Fast reading The war in Ukraine has heightened security-of-supply concerns in the energy sector and among key hard and soft commodities The need for an energy transition away from fossil fuels is now more urgent than ever ESG investing continues to offer the best roadmap to both funding and achieving that transition The notion that […]
ESG Materiality, Q1 2022
In this latest edition of our ESG Materiality newsletter, Olivia Lankester, Director of Responsible Investing & Sustainability, Global Emerging Markets, considers the latest EM response to the net zero imperative. Which countries have gone furthest fastest and which have more to do? ESG Materiality Newsletter, Q1 2022 Download Share: Risk profile This information does not […]
SDG Engagement Equity
2021 Annual Report
Federated Hermes Sustainable European Equities
Key points: How an understanding of change can make or break portfolio returns SDG alignment, engagement and environmental highlights Case study: EssilorLuxottica Case study: Merck Read the full report for a more comprehensive picture. Federated Hermes Sustainable European Equities Download Share:
Global Equity ESG
Annual Report, 2021
