- Unlike equity – where investors have access to one security – credit investors have the ability to align their perception of risk about a particular company with an exact volatility contribution that they want because credit allows for a variety of ways to access that company.
- Sustainable investment has a dual objective: attractive returns for investors while at the same time achieving environmental outcomes. It can be a tricky balance to achieve because there can sometimes be tensions between the two objectives. Many companies, however, are tilting in this direction.
- Sustainability cannot easily be broken down into convenient silos and there are various second-order impacts. Climate change can impact biodiversity; species degradation can impact social issues and so on. Engagement can play a crucial role in staying on top of these second-order impacts.
For further information on Federated Hermes’ credit capabilities, please click here.
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