Subscribe

The AFII net green/fossil fee league table updates proxy indicators on relative tilting of bank counterparties' climate alignment.

Newfoundland and Labrador is opening up for raising capital in EUR SSA market, while facilitating some of the most substantial ultra-deepwater wildcat oil and gas operations globally.

 A relative ranking of Oil & Gas issuers based on their alignment with climate targets combined with market pricing to analyse how environmental performance drives their funding spreads.  

 The market is waiting for confirmation that two index-eligible SLBs will miss their Dec 2022 targets. 

 Mining giant BHP is looking to tap the USD bond market today for the first time in nearly ten years.

We propose an SLB structure which could help achieve coal decommissioning objectives.

The Adani Ports and Green capital stacks are being used to provide credit for the Carmichael mine. Investors should evaluate their exposure.  

Poor performance of Swedish real-estate bonds may have green implications in the domestic market but likely not internationally.

Inflation is driving reduction of CB support mechanism and it might be tilted green: ECB supported non-Eurozone heavy fossil fuel issuers like Shell, BP, Glencore and Schlumberger bonds look vulnerable.

Russia's #1 thermal coal miner landed bonds in an ESG bond ETF  explicitly excluding thermal coal: we analyze the market "process" enabling this.

ABAABB -22s trading at 90 cents with 10 months till maturity. Distressed financing notes.

EIGPRL bonds are likely to fall out of the ESG indices where they should not have landed in the first place.

A potential restructuring should be biodiversity linked.

New EIGPRL bonds were not met with great appetite.

ECOBAR performance in the context of high oil prices.

A selection of the most notable, well shocking, deals of 2021.

Oil and gas pipeline lease-lease-back transactions targetting a +4C scenario. We look at the financing structures.

 Seismic O&G exploration is making some noise in South Africa - we look at how this could affect long-dated USD bonds. 

Glencore's met(hane)morphosis: how to handle credit exposure.

New PON 10y USD priced 2% above ratings implied fair value.

Why are (barely) no Indian bonds issued in EUR?

A review of on-shore and off-shore opportunities in China's bond market.

A review of league tables in bond syndication netting green and fossil bond issuances.

 Drive counterparty lists for climate impact. 

 Will recent IMF covid funding be used to bail out Pemex? DV01 neutral flatteners, long convexity, look relatively attractive.  

 An specific analysis in terms of what types of investors feed capital into controversial projects

  Low carbon credit relative returns have recovered after an extensive oil price rally between 2020Q2 and 2021Q1.  

 WLPAU is taking over BHP's assets which is strengthening the trend  of equity underperformance vs ASX200. WLPAU credit is unch'd: we  suggest a relval trade on CDS. 

 An specific analysis in terms of what types of investors feed capital into controversial projects

 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 s

   When credit investors refuse to refinance coal, credit ratings  drop and bond yields => cost-of-capital increases.  

 Petrochemical companies play an important role in benchmark credit as well as in terms of climate mitigation. We analyse general bond exposures as well as a recent BASF green bond coming out of the sector. 

Even during a oil price rally, low carbon out-performance has still been positive although the relative performance has been lower than before.

  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.  .

Join work with SSFC where we argue for and describe the relevance and functionality for bond markets in the climate transition. Non-technical.

 We discuss the nature of short selling: its dangers, its benefits, after a month of extremely interesting developments in the space. 

  Low carbon has produced stable excess returns versus traditional  credit - we provide an out-of-sample, apples-for-apples examination  using S&P indices based on the ECOBAR allocation model.  

 Podcast discussion with Keesa Schreane at Refinitv around green bond premiums and some policy recommendations from our work on green bond volatility.

 With the announcement of the financing of the Vung An II coal  plant, the AFII initiates its SSA exclusion list by putting JBIC and  KEXIM on it, together with a few of AFII's earlier designated SSA  climate destroyers. And we explain what SSA stands for/is. 

 The biggest USD bond funder of potential Carmichael coal lender  State Bank of India has a dominant private equity owner,  top-three firm  Apollo Management. What does this mean for (climate concerned) end  investors in Apollo funds, and/or the PE manager's engagement  opportunity here?  .

 A green bond market where issuers can directly finance what has  been called “the world’s most insane energy project” and still claim  credit for refinancing a dozen of windmills deserves to be questioned.  Could we avoid it? 

We outline the potential usage of CDS indices for ESG focused investing.

We  suggest an alternative way to get almost identical risk-return exposure  but without lining the pockets of Aramco shareholder(s).

We suggest a HLE2G framework that could cut back ECB exposure to fosill risks equivalen to 3.5GT of CO2e, by just removing 30 entities from its portfolios and operations.

We review out-of-sample performance of the ECOBAR model in the implementation through S&P Dow Jones Indices. Performance continues to be strong with a five year Sharpe ratio 1.62.

Short comment around how the upcoming Green Bunds (German government bonds) will trade as twins, as discussed in our earlier paper "Green Bond Risk Premiums: A Twin-Bond ULFP Approach". [External link]