Anthropocene Fixed Income Institute

 Update on a recent, well-performing CDS relval trade, which should be further supported by the IEA's recents statements on the 'future' of oil and gas exploration. 

(19 May 2021)

 We believe a market neutral relative value  trade combining a credit short on French oil major Total (versus a long  on Norwegian oil major Equinor could be attractive.  From the  perspective of a world locked into rapid climate change, Equinor’s near  monopolistic access to arctic production facilities (and added benefits  from receding ice shelf) trumps Total’s large exposure to hydrocarbon  production in areas more likely to succumb to severe physical climate  change risks as well as rife with social conflict.

(2 March 2021)