All Fixed income articles – Page 10
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Thought leadership
Exploring the disconnects between investors and credit rating agencies
ESG factors are not new to credit risks analysis, but ESG as a systematic analysis framework is.
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Thought leadershipESG, credit risk and ratings: part 2 - exploring the disconnects
Credit practitioners from investors and credit rating agencies (CRAs) are uniting to discuss environmental, social and governance (ESG) topics.
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Technical guideHow to invest in the low-carbon economy
Institutional investors’ responsibility to manage and protect their beneficiaries’ assets must include considering the impacts of climate change.
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ArticleWhat is ESG integration?
The term “ESG integration” is often used when talking about ESG investing.
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Engagement guide
ESG engagement for fixed income investors: managing risks, enhancing returns
Issuer engagement on ESG factors is becoming increasingly commonplace. Investors are starting to formalise their engagement as an integral part of their approaches to responsible investment.
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Engagement guide
Collaborative engagement in fixed income investing
Principle 5 of the six Principles encourages collaboration by investors to enhance the effectiveness of their responsible investment approach.
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Engagement guide
Overcoming common hurdles in fixed income engagement
Despite the motivations for engagement laid out earlier in this report, there remains significant inertia among fixed income investors to engage.
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Engagement guide
Factors determining the effectiveness of engagement in fixed income
Fixed income investors’ ability to influence issuers’ senior management depends on a number of factors, many of which will appear obvious but are nonetheless important to bear in mind when developing an engagement strategy.
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Engagement guide
Embedding engagement in the fixed income investment process
Engagement by fixed income investors should not be seen as a standalone activity but as an integral part of a responsible investment approach . as both a source of information for investment research, and a way to directly influence the issuer’s management of ESG risks and opportunities. Thus, the research ...
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Engagement guide
Timing fixed income engagement
Successful bondholder engagement with issuers is largely dependent on whether the deal is public or private, and whether the investor engages pre- or post-issuance.
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Engagement guide
Prioritising fixed income engagement activities
Investors with exposure to hundreds or thousands of different issuers may only be able to meaningfully and proactively engage a small proportion of those issuers.
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Engagement guideEngagement trends among fixed income investors
This section considers ESG engagement trends among fixed income investors before giving guidance on the practical aspects of bondholder engagement.
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Engagement guide
Tips for effective bondholder engagement
In this section, we present a summary of practical tips for effective bondholder engagement.
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Engagement guide
Defining objectives and measuring the effectiveness of engagement in fixed income
Once the list of target companies has been defined, investors need to set objectives and track the outcomes of their engagement practices to ensure their effectiveness.
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Engagement guideWhy engage as a fixed income investor?
Investors typically engage with companies and other types of issuers to identify, monitor and manage risks to their investment returns. In signing up to the PRI, investors affirm that ESG factors can have a material impact on those returns.
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Engagement guideESG engagement for fixed income investors
Principle 2 of the six Principles encourages investors to be active stewards of their investments and incorporate ESG factors into their ownership policies and practices across different asset classes.
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Thought leadershipESG, credit risk and ratings: part 1 - the state of play
Investors and credit rating agencies (CRAs) are ramping up efforts to consider environmental, social and governance (ESG) factors in credit risk analysis.
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Thought leadershipWhy ESG factors matter in credit risk analysis
Climate change, corporate scandals and the devastating effects of the global financial crisis are all stark reminders of why oversight, lack of transparency and accountability can negatively affect fixed income market pricing, volatility and, ultimately, financial stability.
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Thought leadership
Understanding credit ratings and ESG factors
It is important to understand what credit ratings actually measure, even if investors are familiar with credit rating agency rating scales: risks that affect fixed income instruments extend beyond credit risk, which is associated with the default probability of a borrower.
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Thought leadershipWhat rating agencies are doing on ESG factors
ESG factors are not completely new to credit analysis
