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.
To reduce hydrocarbon capex and leverage up the balance sheet, buy Exxon equity, short the credit.
Spreads to widen further for Total/Equinor CDS trade
Issuer credit ratings are vulnerable to refinancing risks.
Despite the rise in oil prices, low carbon bonds outperformed higher carbon emitting ones
A credit short on Total, versus a long on Equinor could be attractive.
Here, we present arguments for the functionality of bond markets for the climate transition.
Here, we discuss the trading volatility of green bonds vs vanilla bonds.
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