Hermes finds correlation between ESG and credit spreads

Hermes Investment Management’s co-head of credit, Mitch Reznick, discusses the firms new research on Credit and ESG at their latest Credit roundtable. Portfolio Adviser examines the new model created by the Hermes credit team and Hermes EOS that charts an issuer’s ESG score with the spread on their credit default swaps. Mitch Reznick says that although credit risk is the primary force of change in credit spread, ESG factors also have an effect.

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