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.

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.

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Woodside Petroleum vs iTraxx Australia

18/08/2021

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

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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.

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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.

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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

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Short Total. Long Equinor (and/or iTraxx ESG)

02/03/2021

A credit short on Total, versus a long on Equinor could be attractive.

An overhead photo of a road submerged by floodwater.

The bond market and the climate transition

01/11/2020

Here, we present arguments for the functionality of bond markets for the climate transition.