Fixed income

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

CRA_hero

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

Private debt

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

Securitised products_hero

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_image

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.

Sovereign debt

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.

Fixed Income Resources

RI stater guides hero_fixed income

An introduction to responsible investment: fixed income

2019-10-15T09:05:00+01:00

A must-read for those considering how to incorporate ESG factor in valuations within fixed income.

PRI_FIDDQ_Thumbnail

Responsible investment DDQ for fixed income investors

2023-03-02T09:00:00+00:00

This due diligence questionnaire has been developed to help investors understand and evaluate fixed income managers’ approaches to responsible investment.

Business people shaking hands 143069182 copy

ESG engagement for fixed income investors: managing risks, enhancing returns

2017-11-02T12:31:00+00:00

The PRI, Hermes Investment Management and M&G discuss ESG engagement among fixed income investors.

Broadening-outreach-Investment consultants-block-01

Broadening the outreach to investment consultants

2021-10-13T10:11:00+01:00

Investment consultants are critical stakeholders in the investment chain, advising institutional asset owners on a range of issues, including the selection, appointment and monitoring of external managers.