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

SDG Engagement High Yield Credit: H1 2020 Report
Our H1 2020 report explains our integrated investment and engagement strategy
Pricing ESG risk in sovereign credit: an emerging divergence
Is the relationship between ESG scores and CDS spreads more significant for developed or emerging markets?
Why fixed-income investors should factor sustainability into investment decisions
What drives an impactful engagement with a credit issuer?
Pricing ESG risk in sovereign credit
Building on our studies showing a strong relationship between the environmental, social and governance performance...
We can all get along (part II)
How bondholders can engage companies for the benefit of all stakeholders