MSCI Launches New ESG Corporate Bond Indices

    Stockholm (NordSIP) – MSCI announced the launch of a new range of fixed income tools and solutions for institutional investors, including two new Fixed Income ESG indices, the MSCI USD IG ESG Universal Corporate Bond Index and the MSCI USD IG ESG Leaders Corporate Bond Index. The index provider also launched 12 fixed income factor indices on this occasion.

    “We are pleased to bring next generation fixed income indexes to market,” Jana Haines, Head of Index Products, Americas at MSCI commented on this occasion. “Investors are increasingly demanding ESG integration across all asset classes and looking to Factors – such as Carry, Quality, Value, Size and Risk – to more precisely define how they can better identify, measure and manage risk and return in their portfolios.”

    The MSCI USD IG ESG Universal Corporate Bond Index selects its market exposure based on companies’ present and predicted ESG profile. The MSCI USD IG ESG Leaders Corporate Bond Index follows a similar approach. However, it adds a layer of industry exclusions for those companies with significant revenues from the sale of alcohol, gambling, tobacco, nuclear power and controversial weapons.

    “Investors are facing market conditions driven by macroeconomic and geopolitical events, industry dynamics and the increased role of data and technology,” Peter Zangari, Global Head of Research and Product Development at MSCI, added. “Our fixed income solutions help investors assess and manage opportunity and risk, while responding to demand for improved transparency and operational efficiency. Building on our four decades of experience, this next generation of indexes brings increased clarity to the traditionally opaque fixed income asset class to support ESG and Factor based fixed income strategies.”

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    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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