Climate risk pricing

Climate risk is often mispriced. We review unpriced externalities and undertake live market analyses to enable portfolio risk managers to understand the potential impact of climate on credit pricing.

Shell-shocked: a whale trade in corporate bonds

01/12/2021

Shell is starting seismic exploration for oil and gas resources off the East Coast of South Africa.

Short selling has a role in the road to net zero

25/10/2021

The right kind of short selling can have a positive climate impact.

Market opportunity: Indian (green) bond issuance in EUR

30/09/2021

The green bond market is starting to develop in India.

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Trading climate opportunities in the Chinese bond market

25/09/2021

In this report we provide a perspective on the green opportunities for the Chinese bond market.

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Mexiconvexity: Credit, IMF, Pemex

08/09/2021

Mexico's president eager to use IMF covid funding to support Pemex.

An overhead photo of a road submerged by floodwater.

Woodside Petroleum vs iTraxx Australia

18/08/2021

Woodside underperforms Aussie stocks after the deal to take over oil and gas production.

An overhead photo of a road submerged by floodwater.

Carbon negative leveraged investment strategies

12/08/2021

In this report we explain how to apply and account for leverage and short positions in the context of carbon footprinting.

An overhead photo of a road submerged by floodwater.

Big Oil's terrible day: Bond market (lack of) reactions

01/06/2021

Oil companies spreads hardly move following negative news flow.

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Exxon capital structure arbitrage/impact trade idea

21/05/2021

To reduce hydrocarbon capex and leverage up the balance sheet, buy Exxon equity, short the credit.

An overhead photo of a road submerged by floodwater.

Total/Equinor climate risk CDS trade: IEA update

19/05/2021

Spreads to widen further for Total/Equinor CDS trade

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Credit investors, rating agencies and climate: Exhibit 1

14/05/2021

Issuer credit ratings are vulnerable to refinancing risks.

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The oil rally and low carbon credit performance

21/04/2021

Despite the rise in oil prices, low carbon bonds outperformed higher carbon emitting ones