From the desk of
Doug Couden, CFA
With companies and investors increasing their public commitments to sustainability related goals, the transition process presents the opportunity for investors to help enact real change. However, meeting these goals means different things for different sectors and different companies - some will need to fundamentally change what they do and how they do it, while others can achieve their targets with more modest shifts.
From Concept to Reality: The Next Phase of the ESG Transition Is Here
Although moving to a more sustainable future is clearly desirable and presents an array of investment opportunities, transition does not come for free and the question of who should bear that cost sits largely unaddressed given the intersection of government and corporate policies. For investors, there is also the question of whether it is better to invest in sectors (and companies) that are more advanced in their transition process or those that are just starting out given the costs and potential return trade-offs involved.
4
Chief Investment Officer,
Partner
Access to Management & Disclosure Levels Correlate With Trading Levels
Based on the inputs from our fundamental credit analysts, we analysed the effect of disclosure on spread levels and liquidity. Apart from the early phase of the pandemic, higher access to management resulted in tighter spreads. Higher levels of disclosure also resulted in more liquidity; this was even the case in 2020.
Sources: Barclays, BakerAvenue. As of 6/1/2023.
Sources: Barclays, BakerAvenue. As of 6/1/2023.
...And Better Liquidity
Higher Access to Management Results in Tighter Spreads...