Fixed income

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Fixed income investors may not be shareholders, but as lenders of capital through corporate and government bonds, they can play an important role in promoting the responsible investment agenda.

Our resources explore the role of credit rating agencies in enhancing the integration of environmental, social and governance (ESG) factors in credit risk analysis. We also examine ESG incorporation in fixed income asset classes such as private debt, securitised debt, sovereign debt and sub-sovereign debt. To hear more about our fixed income work, contact us.

Fixed income workstreams

Credit risk and ratings

The PRI is facilitating a dialogue between credit ratings agencies and investors to cultivate a common language, discuss ESG risks to creditworthiness and bridge disconnects.

Private debt

ESG incorporation in private debt provides LPs and GPs with additional credit risk insights throughout the deal cycle.

Securitised debt

ESG incorporation in securitised debt is in its infancy compared to other fixed income sub-asset classes, although the discussion is quickly evolving from why to how.

Sovereign debt

A more explicit and systematic consideration of ESG factors can enhance risk assessments of government bonds and help drive change towards more sustainable growth models.

Sub-sovereign debt

Sub-sovereign bondholders often fund public services and infrastructure, which have a clear link to sustainability outcomes while potentially being vulnerable to ESG risks.