All Fixed income articles – Page 6

  • Case studies

    Community development programmes in Mexico


    Case study by HSBC Asset Managment Mexico

  • Fixed income investor guide

    Fixed income investor guide


    The Fixed income investor guide summarises the unique characteristics of fixed income with its various subcategories of issuers and instruments. It helps to explain why fixed income investors should take a bottom-up approach to RI while borrowing from the experiences of other asset classes, such as listed equities.

  • Reports/Guides

    Integrating ESG factors into issuer analysis


    In fixed income, a key application for ESG information is to inform analysis of issuer creditworthiness. ESG issues, such as corruption or climate change, are potential risks to macro factors that may affect an issuer’s ability to repay its debt.

  • Corruption levels of 87 countries (Corruption Perception Index) and sovereign defaults since 1970

    Integrating ESG factors into sovereign issuer analysis


    Governance factors such as institutional strength and political risks will have an impact on a sovereign’s ability and willingness to repay its debt on time. A country’s exposure and resilience to systemic environmental risks such as water scarcity will affect economic outputs, borrowing and its ability to attract foreign investment ...

  • External environmental costs for different sectors

    Integrating ESG factors into corporate issuer analysis


    Analyses of governance factors such as remuneration and financial auditing are common among bond investors, but few systematically integrate a wide range of ESG factors into credit analysis.

  • Reports/Guides

    ESG screening in fixed income investing


    Fixed income investors apply ESG filters or screens to their investment universe to control which issuers or securities are considered for investment. This is an effective way of ensuring their investments are aligned with their (client’s) ethical motivations and reduces reputational risks.

  • Proportion of PRI signatories engaging with issuers on ESG management (2014)

    Engaging issuers on ESG issues


    Debt and equity holders both stand to benefit financially from successful engagements, as ESG-related risks are mitigated and opportunities maximised.

  • Growth of green bonds issuance 2007–2014

    Themed fixed income investing


    Investment products such as green bonds are seen by many as a way of addressing ESG risks such as climate change and water scarcity.

  • Reports/Guides

    Embedding responsible investment into the fixed income investment process


    There are a number of fundamental building blocks, regardless of asset class, that all investors should consider when setting their organisation up to implement responsible investment.

  • Framework for exploring the relationship between ESG factors, credit factors and measures of creditworthiness

    Corporate bonds: Spotlight on ESG risks


    Poor governance can lead to spectacular corporate failures. In most cases – Enron, Parmalat, Lehman Brothers, MF Global, and major US and European banks — shareholders aren’t the only ones to lose out; bondholders are also affected.

  • Framework for exploring the links between ESG factors and sovereign fixed income investment performance

    Sovereign bonds: Spotlight on ESG risks


    How did so many financial analysts, with so much information and technology at their disposal, fail to see the euro zone debt crisis coming, and what can be done to avoid such risks next time?