Responsible Investment in Fixed Income Markets

This book provides the world’s first comprehensive account of responsible investment for fixed income investors. It enables readers to understand the key characteristics of fixed income investments and the relevance of sustainability-related issues to fixed income markets.

 

The expert contributors to this volume explain how sustainability-related issues can be taken into account in fixed income research and decision-making, in portfolio construction, and in active ownership (engagement). They provide a series of detailed case-studies from different parts of the fixed income market (corporate investment grade and high yield, emerging markets, sovereign and municipal debt), from a range of organisations with a variety of investment approaches. The contributors also provide in-depth critical analysis of key issues such as the role and influence of credit rating agencies, green bonds, data and public policy in shaping investment practice.

 

For investors, this book provides practical guidance on how to improve the financial and the sustainability performance of their fixed income investments. For stakeholders such as companies, civil society organisations, and governments it allows them to understand the role that fixed income might play in delivering the Sustainable Development Goals (SDGs), and to understand how they might encourage fixed income investors to pay greater attention to sustainability-related issues in their investment practices and processes.

 

Table of Contents

1. Introduction 

Rory Sullivan and Joshua Kendall 

Part I: Fundamentals 

2. Essential Concepts in Fixed Income Investing I: Function and Analysis  

David Oakes 

3. Essential Concepts in Fixed Income Investing II: Participants and Portfolios  

David Oakes 

4. The Landscape of Responsible Investment and Fixed Income 

Carmen Nuzzo and Sixtine Dubost 

Part II: Sovereign Investing 

5. ESG Factors in Sovereign Debt Investing 

James Lockhart Smith, Mariana Magaldi de Sousa, My-Linh Ngo, Jana Velebova and David Wille 

6. ESG Considerations in Sovereign and Public Finance Credit Analysis 

Joan Feldbaum-Vidra, Emilie Nadler, and Andrea Torres Villanueva 

7. Sovereign ESG Risk Analysis and Engagement  

Scott Mather and Lupin Rahman 

Part III: Corporate Investing 

8. The Stewardship Mechanisms of Corporate Bond Investors 

Arabella Turner 

9. Connecting ESG factors with Credit Ratings 

Andrew Steel and Justin Sloggett 

10. The Role of ESG Risk Factors in Corporate Credit Analysis 

Joshua Kendall and Tudor Thomas 

11. Responsible Investment Strategies in Corporate Fixed Income  

Alex Everett and Keith Logan 

12. ESG Research in Different Fixed Income Sectors 

Robert Fernandez 

Part IV: Impact Investing 

13. Impact Investing in Fixed Income Markets 

Johanna Köb  

14. The Impact Bond Market  

Manuel Adamini and Krista Tukiainen 

15. Using Bond Markets to Achieve Issuer Sustainability Outcomes  

Peter Munro 

16. Impact Bonds: Issuers and Investors 

Radek Ján, Thomas Girard and Thibaut Cuillière 

Part V: Market Influencers 

17. The Role of Sustainable Treasury Teams 

Arthur Krebbers and Jaspreet Singh

18. ESG Data, Ratings and Indexes 

Kevin Kwok 

19. Assessing the Responsible Investment Performance of Fixed Income Fund Managers 

Tomi Nummela and Sarika Goel 

20. Delivering Sustainable Investment Objectives through the Capital Markets 

Doris Kramer and Caroline Horbrügger 

Part VI: Investment Products 

21. Investment Product Design and Development 

Michael Ridley 

22. Understanding Trends and Drivers in Fixed Income Investment Products 

Hortense Bioy and Benjamin Joseph 

Part VII: Looking Forward 

23. Regulation, Policy and Fixed Income 

Will Martindale 

24. Measuring the Impact of Climate Change  

James Edwards, Tamara Straus and Natalie Ambrosio Preudhomme 

25. Fixed Income Markets and Responsible Investment: The Past, the Present and the Future 

Rory Sullivan and Joshua Kendall