Optimise Approaches to Fixed Income ESG Trading

Available on-demand.

The regulatory landscape around ESG products in Europe and the UK has moved decisively over the last couple of years and buy and sell-side firms face new pressures in funding, pricing, and trading. In part due to this regulatory push and new opportunities opening up in the space, there has been increased demand for ESG fixed income products. As trading activity has picked up, this has its own implications on the market and poses questions around whether firms trading in these products face differences between products like classic credit instruments such as CDX and FI ESG index futures. Variations in their composition may lead to adjustments which need to be made in considering areas like liquidity, funding, and hedging. Developing the right approach which can account for all these areas enables firms to take advantage of trading opportunities in a volatile market and improve their competitiveness.

Learning Objectives:

• Understand the regulatory and fixed income ESG product landscape in the European Union and the UK
• Assess the implications of increased ESG trading activity on liquidity, funding, and pricing
• Implement solutions to optimise hedging, portfolio overlay, cash management, and leveraged long exposure
• Capitalise on fixed income ESG trading opportunities in a more volatile landscape

Speakers

Bryn Jones
Head of Fixed Income
Rathbones Group

Head of Fixed Income Research and Director of Fixed Income at Rathbone Bros PLC. Head of fixed income committee, member of Strategic Asset Allocation committee, and member of Banking Committee.

Manager of £2bn Rathbone Ethical Bond Fund and £200mn Rathbone Strategic Bond Fund, and advisor for >£6bn of Fixed income assets. Manager of assets for Big Society Capital and Access, Foundation for Social change.

Stefan Schmidt
Senior Derivatives Trader
Union Investment

Antony Harden
Equity Derivatives Sales Trader
Goldman Sachs

Aloys Fortier
Credit Derivatives Trading — Vice President
Goldman Sachs

Davide Masi
Fixed Income Derivatives Product R&D
Eurex