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Fixed-Income ESG Strategies

In: SUSTAINABLE INVESTING Problems and Solutions

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  • Ulf Erlandsson

Abstract

Fixed income is the biggest asset class in global financial markets, spanning capital provision for all types of entities from sovereign to private corporates, and with a direct cost-of-capital effect through primary market capital supply. This article discusses a holistic perspective on applying climate and ESG-type investment preferences on fixed-income portfolios. We discuss how these types of strategies then can be implemented in a portfolio context to generate a well-diversified impact and risk/return profile. Due to the asymmetrical risk–return profile of fixed income, applying a multi-threaded, well-diversified approach is argued to be a fiduciary-aligned approach to managing any fixed-income portfolio.

Suggested Citation

  • Ulf Erlandsson, 2024. "Fixed-Income ESG Strategies," World Scientific Book Chapters, in: Anatoly B Schmidt (ed.), SUSTAINABLE INVESTING Problems and Solutions, chapter 17, pages 451-472, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789811297786_0017
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