Sustainable investing and bond returns – the impact of ESG on credit portfolio performance

In investigating the link between ESG and corporate bond performance, Barclays Research constructed broadly diversified portfolios tracking the Bloomberg Barclays US Investment-Grade Corporate Bond Index. They matched the index’s key characteristics (sector, quality, duration) but imposed either a positive or negative tilt to different ESG factors. Barclays research shows that ESG need not be an [...]