Securitized Fixed Income: A potent shield against ESG risk

Securitized assets make up over a quarter of the U.S. fixed income market1, yet are an often overlooked opportunity for enhancing risk-adjusted yield while managing environmental, social, and governance (ESG) exposure in a fixed income portfolio.

BBH recently published a comprehensive framework for evaluating ESG exposure in the securitization market and we demonstrate direct empirical evidence that securitizations insulate investors from ESG event risk.  Our new study introduces this framework and our detailed findings which strongly underscore the need to apply a specialized ESG framework to securitized fixed income.  Our full study and summary report can be found at the links below.

For more information on how BBH Investment Management incorporates ESG analysis into our investment process, please read about our ESG Approach.

ESG Considerations for Securitized Fixed Income Notes. Read the Full Study. ESG Considerations for Securitized Fixed Income Notes. Read the Executive Summary.

  1SIFMA, Outstanding Bond Market Debt, 12/31/2018