- Our analysis focused on the transition risk of investment-grade corporate-bond benchmarks and portfolios under a climate-policy scenario designed to limit the increase in temperature to 1.5°C.
- As reflected by market-capitalization-weighted benchmarks, we found that the broader investment-grade corporate market experienced a potentially significant negative impact under our assumed climate scenario.
- We constructed hypothetical portfolios that generated small gains in potential value in this scenario, without introducing significant tracking-error risk versus the portfolios’ benchmarks.
MSCI
Climate Transition and Bonds: Risk or Opportunity?
