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Sustainable-Debt Dispatch
Aug 19, 2024
Clients are increasingly looking to integrate sustainability and climate risk and impact into their bond and private-debt analysis, and are looking for metrics that can guide them in making these assessments. In this new paper, we explore a number of MSCI metrics that could help, including MSCI Climate Value-at-Risk, Implied Temperature Rise, Low Carbon Transition scores and Total Portfolio Footprinting, and focus on the following five topics:
- Fixed income and climate integration
- Fixed income and sustainability
- Labeled bonds
- Sovereign bonds
- Private debt and sustainability
Focusing in on private debt, the outlook for renewable energy has particularly impacted net deal count, as illustrated in the exhibit.
A rush toward renewables amid net exits in oil and gas
This chart is based on investments in 1,753 unique holdings in 443 unique private-capital funds and proceeds from 1,146 unique exited holdings in 332 unique private-capital funds. Net deal count is the difference between the number of new holdings (or deals) and the number of exited holdings. Data as of Q4 2023 from the MSCI Private Capital universe dataset. Source: MSCI Private Capital
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Research authors
- Michael Ridley, Executive Director, MSCI Research
- Jakub Malich, Vice President, MSCI Research
- Vishakha Pandey, Senior Associate, MSCI Research
- Anett Husi, Analyst, MSCI Research
- Alexander Schober, Senior Associate, MSCI Research
- Meghna Mehta, Vice President, MSCI Research
- Matteo Petrovich, Senior Associate, MSCI Research
- Cole Martin, Senior Associate, MSCI Research
- Abdulla Zaid, Vice President, MSCI Research
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