FTSE Russell wins Best Fixed Income Paper 2020
Fixed income as an asset class has been far from immune from ESG analysis, but most fixed income ESG papers seem to focus upon green bonds or ESG integration in a general sense. FTSE Russell's winning paper, on the other hand, gets very specific with their analysis, narrowing the scope of examination to U.S. residential mortgage-backed securities. Adopting YieldBook's ESG Taxonomy, they provide details of responsible (and irresponsible) lending and servicing practices for the RMBS market.
WINNING PAPER: FTSE RUSSELL
Using YieldBook's ESG Taxonomy analysis suite, FTSE Russell applies a bottom-up methodology for sustainable analysis to the residential mortgage-backed securities market. Responsible lending practices are defined in opposition to predatory behavior and risky loans. Similarly, predatory servicing practices are either unfair, deceptive, or fraudulent in nature.
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