Search this website. You can use fund codes to locate specific funds

Pricing ESG risk in credit markets: reinforcing our conviction

To analyse credit risks with greater precision, we developed a pricing model last year to capture the influence of environmental, social and governance (ESG) factors on credit spreads. It showed a convincing relationship between ESG risk and credit spreads, manifesting as an ESG-risk curve.

After expanding this research, we found this relationship between ESG risk and credit spreads to be reinforced.

More Insights

Climate Change High Yield Credit strategy, interim report 2022
In this inaugural report, we delve into what makes the Federated Hermes Climate Change High Yield Credit strategy unique. As well as introducing our process and team, the report provides an overview of our proprietary Climate Change Impact (CCI) score, complete with portfolio examples to illustrate the scoring system in practice.
SDG Engagement High Yield Credit: 2021 Annual Report
Our 2021 Annual Report outlines how the SDG Engagement High Yield Credit strategy delivered on its colinear objectives: strong financial performance for investors, and future, positive social and environmental impact contributing to achieving the United Nations’ Sustainable Development Goals.
Do sustainability-linked bonds have a step-up problem?
Sustainability-linked bonds (SLBs) have grown rapidly since 2019 but the market’s preferred method for punishing companies that miss sustainability targets is flawed, argues Mitch Reznick, Federated Hermes Head of Sustainable Fixed Income.
Fixed Income Update: 21 January 2022
Eoin Murray, Head of Investment, is joined by the senior members of the Fixed Income team to introduce the succession plan.
An asset class at a crossroads: reshaping credit through ESG
We outline our credit team’s ESG and engagement integration philosophy, and how the team is working to authentically integrate ESG into every step of its investment process.
Credit Pulse: market update – 15 October 2021
In our latest Credit Pulse, we look at how sustainability is managed within our fixed income offering.