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Our dedicated commitment to sustainable wealth creation means we are not only busy forming financial expectations for the upcoming earnings season, but ESG expectations too.

In this episode of Credit Pulse we explore the implications of the US election result, the role that oil-and-gas debt issuers could play in a decarbonising world and give our lessons learned from 2020.

In the run-up to the US election, many investors had positioned themselves for a ‘Blue Wave’. Yet, as it became clear that Biden’s Presidency would not be accompanied by a majority Democratic senate, oil and gas stocks rallied and renewable energy producer stocks fell. The absence of a senate majority has cast doubt on the now President-Elect’s ability to push through a climate-focused plan that would see an overhaul of federal energy policy and pledge to rejoin the Paris accord.

The energy transition is an existential long-term risk for oil and gas companies.

Fuelling the energy transition: how the oil and gas industry is preparing for a changing world

Audra Delport, CFA, Deputy Head of Credit Research, discusses the most surprising developments from the Q2 energy earnings season.

Audra Delport, Deputy Head of Credit Research, and Ilana Elbim, Senior Credit Analyst, provide their insights on oil, energy and autos.

Audra Stundziaite, Deputy Head of Credit Research, explores the theme of consolidation in the energy sector.

Last week, US oil major Chevron announced plans to buy its smaller peer Anadarko.

The high-yield energy sector underperformed in the final quarter of last year as oil prices sold off. Amid this volatility, how can credit investors find stable outperformers?

Almost two years ago, Andrey Kuznetsov, Credit Portfolio Manager and Audra Stundziaite, Senior Credit Analyst, at Hermes Investment Management, argued that the market for European hybrids was attractive for both issuers and investors. Today, they revisit the case for hybrids and ask: in the growing global hybrid market, where is the relative value? In 2016, we argued in favour of an increased allocation to the European hybrid market in an issue of our quarterly commentary Spectrum, “Putting two and two together: how hybrids can add up for investors.” The central premise was that hybrids were attractive for investors due to the inherent investment benefits they offer and a supportive economic backdrop

Almost two years ago, we argued that the market for European hybrids – instruments that blend features of debt and equity – was attractive for both issuers and investors. Today, we revisit the case for hybrids and ask: in the growing global hybrid market, where is the relative value?Hybrids have developed a track record with both issuers and investors in recent years: investors are attracted by the yield pick-up they offer, while they are a relatively cost-effective funding instrument for issuers.