Fixed income represents the largest portion of assets under management for many institutional investors. Recent events such as the BP explosion in the Gulf of Mexico, corporate governance shortcomings at Olympus, the Eurozone debt crisis and the Arab Spring, have served to remind corporate and sovereign fixed income investors of the potentially massive downside risks associated with investing in this asset class.
About the work stream
Over 65 signatories are currently involved in the PRI’s Fixed Income Work Stream, which is exploring the business case for ESG integration and developing a common understanding of best practice within the investment industry. Many of the PRI’s largest asset owner signatories actively participate in the work stream.
There are two active working groups within this work stream exploring ESG risk, integration and engagement in both corporate and sovereign fixed income. Drawing on academic studies and practical evidence from signatories, the working groups are developing several resources to communicate their findings. These groups are also reviewing the methodologies of credit rating agencies and the work of other research providers to determine how they can better support investors seeking to integrate ESG issues.
Resources listed may require PRI signatory extranet access.
- Fixed income discussion paper (June 2011)
In 2013, the work stream will publish two reports on ESG risk in corporate and sovereign fixed income.
- Green bonds – a viable alternative for fixed income investors? (August 2011)
- Corporate Fixed Income: Strategies for the Responsible Investor (October 2011)
Previous PRI in Person sessions
- Fixed income: key challenges for the responsible investor (September 2011)