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

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.
SDG Engagement High Yield: H1 Report, 2021
We have been delighted both with our financial results and with the substantive, high-touch engagement outcomes of our inaugural engagement year.
It’s not easy being green: analysing corporate treatment of carbon-intensive activities
Companies are recognising the benefits of being seen as a decarbonisation leader.
SDG Engagement High Yield Credit: 2020 Annual Report
Building the foundation and hitting our stride: a promising, productive inaugural engagement year
Back to the future: The predicative power of science-based targets