This book provides the worlds 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.
1. Introduction Part I: Fundamentals 2. Essential Concepts in Fixed Income Investing I: Function and Analysis 3. Essential Concepts in Fixed Income Investing II: Participants and Portfolios 4. The Landscape of Responsible Investment and Fixed Income Part II: Sovereign Investing 5. ESG Factors in Sovereign Debt Investing 6. ESG Considerations in Sovereign and Public Finance Credit Analysis 7. Sovereign ESG Risk Analysis and Engagement Part III: Corporate Investing 8. The Stewardship Mechanisms of Corporate Bond Investors 9. Connecting ESG factors with Credit Ratings 10. The Role of ESG Risk Factors in Corporate Credit Analysis 11. Responsible Investment Strategies in Corporate Fixed Income 12. ESG Research in Different Fixed Income Sectors Part IV: Impact Investing 13. Impact Investing in Fixed Income Markets 14. The Impact Bond Market 15. Using Bond Markets to Achieve Issuer Sustainability Outcomes 16. Impact Bonds: Issuers and Investors Part V: Market Influencers 17. The Role of Sustainable Treasury Teams 18. ESG Data, Ratings and Indexes 19. Assessing the Responsible Investment Performance of Fixed Income Fund Managers 20. Delivering Sustainable Investment Objectives through the Capital Markets Part VI: Investment Products 21. Investment Product Design and Development 22. Understanding Trends and Drivers in Fixed Income Investment Products Part VII: Looking Forward 23. Regulation, Policy and Fixed Income 24. Measuring the Impact of Climate Change 25. Fixed Income Markets and Responsible Investment: The Past, the Present and the Future
