Sustainable municipal investing through funds still represents a small segment of the overall sustainable investing universe, yet there is developing interest in the area.  In addition to impact-oriented funds as well as funds that integrate ESG, there is now a green bond municipal ETF and just last month, a new actively managed ETF was launched.  Most products rely on ESG integration approaches but assessing factors relevant to munis may be more nuanced.  Also, with about 50,000 different state and local governments and other issuing authorities in the US of varying sizes and tax bases, social and environmental data disclosures vary and oftentimes may be insufficient.  ESG rating firms are stepping up to fill the gaps but many asset managers have developed their own approaches to integrating ESG into their investment management practices.  The panel focused on developments in the sustainable municipal sphere and shared their views on investment approaches, data challenges, disclosure practices and how these may be aligning with investor expectations. 

• Moderator:
  • James Colby, Senior Municipal Strategist & Portfolio Manager, VanEck

• Panelists:
  • Tim Coffin, Senior Vice President & Director of Sustainability, Breckinridge Capital Advisors
  • Wayne D. Godlin, Managing Director, is a member of the Global Fixed Income, Currency & Commodities (GFICC) Group, J. P. Morgan Asset Management
  • Ksenia Koban, Senior Vice President & Co-Head of ESG Committee, Head of Municipal Research, Payden Rygel

Webcast conversation with the co-founder and co-chairman of Oaktree, and FIASI Hall-of-Fame member, Howard Marks, CFA as he discussed his investment philosophy. This talk was hosted by Taylor Riggs, CFA of Bloomberg TV.

Private Debt has become THE area for fixed income over the past couple of years, growing at a faster clip rate than most other areas of the capital markets. Two truly Outstanding Investors addressed private debt nuances, challenges, and opportunities. We also heard from the well-regarded author of Private Debt – Opportunities in Direct Lending.

Panelists:

• Theodore L. Koenig, CEO, Monroe Capital
• Randy Schwimmer, Senior Managing Director, Co-Head of Senior Lending, Churchill Asset Management LLC

The program also included a summary of the outstanding book Private Debt: Opportunities in Corporate Direct Lending by Stephen Nesbitt, a well-written, comprehensive book on private debt.

Martin Fridson, CFA presented empirical research that leads to some surprising conclusions about the high yield market, including.

• The best predictor of spreads on high yield bonds is not leverage, coverage, or free cash flow.
• Index-based spreads between rating categories provide misleading signals to sector rotators.
• There is no systematic underpricing of speculative grade busted convertibles.
• There are instances where yield and price move in the same direction.
• Market-cap-weighted indexes do not cause investors to be overweighted in the most leveraged credits.
• One previous study found that the high yield spread curve is positive. Another found that it is negative. Both were wrong.
• The reported volatility of the high yield asset class is unquestionably understated

CLOs occupy the intersection of corporate credit analysis and structured finance. Despite the fears of many, CLOs have weathered the COVID crisis in good shape. The real action in this area is with the subordinated tranches and few have seen more than our well-regarded, well-respected panelists.

Our experts explain the ins and outs of this durable asset class from the perspective of investors: how to make money, avoid losses, and grow a solid business.

Moderator:

• Lee Shaiman, Executive Director for the Loan Syndications and Trading Association (LSTA), 

Panelists: 

• Charles Arduini, Partner, Ares Credit Group
• John Kim, CEO and CIO of Panagram Structured Asset Management
• Tom Majewski, CEO of Eagle Point

The Fixed Income Analysts Society (FIASI) in collaboration with Fordham University’s Center for Research in Contemporary Finance and the O’Shea Center for Credit Analysis and Investment are pleased to host an early evening virtual presentation by the authors of three winning research papers in the ESG in Fixed Income Research Competition.

On April 23, 2021 FIASI and Fordham University’s Gabelli School of Business announced the winners of three undergraduate and graduate student research papers, as part of the first annual Student Research Competition on environmental, social and governance (ESG) focused investments and innovations. The following winners will present their research paper findings and engage in brief Q&A sessions.

• Undergraduate research paper
  • Julia de Xavier, Resham Sansi (faculty advisor: N.K. Chidambaran):  pdf The Impact of ESG Scores on Bond Yields and Bond Characteristics (469 KB) . The paper examines whether issuer ESG ratings affect bond yields, bond ratings, and the covenants on bonds.   
• Graduate research papers
  • Eun-Hee Kim and Mingying Cheng:  pdf Strategic Environmental Disclosure and Financial Materiality (868 KB) . The paper evaluates how firms with poor environmental performance manage the tension between the pressure to disclose environmental information and the desire to avoid financial repercussions.
  • Elsa Allman and Joonsung Won:  pdf The Effect of ESG Disclosure on Corporate Investment Efficiency (467 KB) . The paper examines the effect of environmental, social and governance (ESG) disclosure on investment efficiency using the adoption of Directive 2014/95/EU as a quasi-natural shock on disclosure quality.

We held a discussion about the automakers and their credit worthiness, views from rating agencies, sell-side and buy-side research as the autos undergo a generational change. 

Moderator: 

• Ralph DeCesare,  Managing Director and Head of Credit Research, TD Asset Management

Panelists:

• Bruce Clark, Senior Vice President, Moody's Corporation
• Nishit Madlani, Director, Corporate Ratings - Manufacturing & Transportation, S&P Global 
• Peter Troisi, Director in the Credit Research group, Barclays

Authors of the upcoming book:

pdf Undiversified: The Big Gender Short in Investment Management (360 KB)

• Ellen Carr, Fixed Income Portfolio Manager, Weaver Barksdale
• Katrina Dudley, Senior Vice President, Investment Strategist and Portfolio Manager, Franklin Templeton Investments.

Are interviewed by: Bob Kricheff, Senior VP and Global Strategist, Shenkman Capital Management.

Conference Schedule was:

Thursday, April 22nd, 2021 

• Introduction & Launch:
  • Moderator: Larry White, Managing Director Business Development, DBRS | Morningstar
    • Baer Pettit, President and Chief Operating Officer, MSCI
  • Notes from this panel discussion.

• ESG Corporate Bonds Panel:
  • Moderator: Ulf G. Erlandsson, Ph.D., CEO of Anthropocene Fixed Income Institute (AFII)
  • Panelists:
    • Del Anderson, CFA, FSA, Senior Vice President, Credit Research Analyst, ESG / Financials, PIMCO
    • Andrew Lin, CFA, Managing Director, Infrastructure, Power and Utilities, DBRS Morningstar
    • Joshua Linder, CFA, Senior Credit Analyst, APG-USA
    • Bonnie Wongtrakool, CFA, Global Head of ESG Investment and Portfolio Manager, Western Asset
  • Notes from this panel discussion.

• Green Bonds Panel: 
  • Moderator: Caroline Flammer, Associate Professor and Dean’s Research Scholar at Boston University’s Questrom School of Business, Boston University
  • Panelists:
    • Trevor Allen, Head of Sustainable Finance Research Global Markets Research Division, BNP Paribas
    • Stephen Liberatore, CFA, Managing Director Head of ESG/Impact, Nuveen
    • Alastair Sewell, CFA, Senior Director, Fund & Asset Management, Fitch Ratings
    • Ronald van Loon, CFA, Managing Director, BlackRock
  • Notes from this panel discussion.

• Conclusion of Day One:
  • Ralph DeCesare, CFA, CAIA, Managing Director & Head of Credit Research, TDAM USA, Inc.

Friday, April 23rd, 2021

• Introduction Day Two and of Student Scholarship Award Winners
  • John D. Finnerty, Ph.D., Professor Finance and Business Economics, Fordham University
  • Mark Howard, CFA, Senior Multi-Asset Specialist, BNP Paribas Securities

• ESG Fixed Income Indices
  • Moderator: Henry Shilling, Director of Research, Sustainable Research and Analysis
  • Panelists:
    • Philip Galdi, Head of Indices, ICE Data Indices, LLC
    • Chris Hackel, Index Product Manager, Bloomberg LP
    • Kumaran Ram, Executive Director, J.P. Morgan Global Index Research
    • Elisabeth Seep, Executive Director, ESG Fixed Income Product Manager, MSCI
  • Notes from this panel discussion.

• ESG FI CMBS 
  • Moderator: Keith Kockenmeister, Senior Managing Director, Kroll Bond Rating Agency, Inc.
  • Panelists:
    • Peter Beer, Vice President & Securitized Credit Analyst, Payden & Rygel
    • Leland Bunch, Managing Director, Head of CMBS Capital Markets, Bank of America
    • Thomas A. Fink, CRE, Senior Vice President and Managing Director of Trepp, LLC
    • Edward Reardon, Managing Director, Deutsche Bank
  • Notes from this panel discussion.

• J.P. Morgan ESG Workshop Panel: Investing within planetary boundaries – pursuing Paris-Alignment through Carbon Analytics
  • Moderator: Lydia Harvey, Senior ESG Specialist, J.P. Morgan Global Index Research Group.
  • Panelists:
    • Hasan Cerhozi, Head of Product Development - Methods and Innovation, Vigeo Eiris (V.E.)
    • Francis Condon, Sustainable Investment Team – Fixed Income Specialist, UBS Asset Management Switzerland AG
    • William Perry, Head of Global High Yield & Emerging Markets Corporates, Co-Head of ESG Committee, Stone Harbor
    • Rupert Rink, ESG Specialist, J.P. Morgan Global Index Research
  • Notes from this panel discussion

• Conclusion of Day Two:
  • Erin Lyons, Co-head US Investment Grade Research and the US Credit Strategist at CreditSights

Senior members of Bloomberg Intelligence’s credit research team will discuss favorite Bloomberg functionality and how it’s applied in credit analysis. Following, the team will pitch both investment grade and high yield bonds we believe to be too wide or tight to peers.

Prof Edward I. Altman, Max L. Heine Professor, Emeritus, Salomon Center, NYU Stern School of Business, and a 2001 FIASI Hall of Fame member presented his assessment of the credit climate from just before the unexpected COVID-19 global health crisis to its immediate and extended impact. Based on a recently completed research paper, Professor Altman will share his analysis of the performance of several key indicators of the nature of credit cycles, including default and recovery rates on high-yield bonds, and the number of large firm bankruptcies that are expected over the next twelve months and beyond, yield spreads and distress ratios and liquidity. The focus of the research paper is primarily on the nonfinancial corporate debt market in the United States, but also covered is the leveraged loan and collateralized loan obligation markets as well as the increasingly large and important BBB tranche of the corporate bond market.

The agenda for the webinar is as follows:

• Introductory Remarks by Larry White, Managing Director, Business Development, DBRS Morningstar
• Panel discussion: Sustainable Investing in the High Yield Sector
  • Moderator 
    • Martin Fridson, CFA, Chief Investment Officer, Lehmann Livian Fridson Advisors, LLC
  • Panelists
    • Amy Levine, CFA, is a Senior Vice President, Director of ESG, Shenkman Capital Management
    • Joseph DiCarlo, CFA, Senior Financial Analyst, MetLife Investment Management
    • Kay Herr, CFA, Managing Director, Head of Research, Global Fixed Income, Currency & Commodities, J.P. Morgan Asset Management
• Sris Charterjee, Gabelli Chair in Global Security Analysis Finance and Business Economics, Fordham University:  Recent green bonds research findings
• Panel discussion: Climate change and credit rating agency actions
  • Moderator 
    • Henry Shilling, Director of Research, Sustainable Research and Analysis LLC
  • Panelists
    • William Cox, Global Head of Corporate, Financial and Government Ratings, Kroll Bond Rating Agency
    • James Leaton, Vice President, Senior Credit Officer, Moody’s Global Environmental
    • Andrew Lin, Managing Director, Head of Energy and Project Finance at DBRS Morningstar
    • Lisa Schroeer, Sector Leader & Senior Director in the U.S. Public Finance Division for S&P Global Ratings
    • Andrew Steel, Managing Director, Global Group Head, Sustainable Finance, Fitch Ratings
• Concluding Remarks by Henry Shilling, Director of Research, Sustainable Research and Analysis LLC

A message from The Strategic Planning Committee of the FIASI Board:

We hope you are doing well as we enter what seems to be a new worrisome phase of the COVID pandemic. As we’ve been managing through this crisis during these many months, one of the most difficult challenges has been the inability to have face-to-face/in-person interactions with work colleagues and FIASI Members. We’ve all had to adapt and FIASI is no different in this respect. I'm pleased to report that FIASI's financial condition remains sound and will allow us to adapt as needed. FIASI’s Board would like to update you and also ask for your support and assistance with some new initiatives.

FIASI hosted a brief virtual meeting on Thursday, November 19th, at 5pm EST and filled those who attended in on the status of the Hall of Fame, some future programming events and our strategic plan initiative.

In line with our deliberations around the FIASI strategic plan and our conclusions that FIASI needs to step up its programing, expand membership and diversify its sources of income to ensure the organization's sustainability, the Board has made a decision to implement a new committee structure involving both Board Members and our Membership (you!) in order to better facilitate activities and meet our objectives. Our strategic planning committee believes this new structure will provide more avenues for member participation and additional reasons to join FIASI. Furthermore, FIASI is expecting that successful committee participation by its Members will serve as an effective way to groom them for eventual Board level participation. To start we have identified three committees for which we want Member participation.

• Membership
• Programming
• Marketing

The Board and our Members will work side-by-side on these committees to ensure that FIASI meets its long-term objectives by: 1) serving and growing FIASI's membership, 2) supporting and enhancing our programming with relevant targeted content, including the Hall of Fame, ESG, WIFI and other future events, and 3) leveraging marketing and outreach efforts, including social media in a smart, effective way in this evolving world in which we live and work. We believe our future is bright and we invite you to be part of FIASI’s future by participating in these efforts with us.

We hope you joined us but if not, watch the video by clicking the link below.

Sincerely,

The Strategic Planning Committee

• Larry White, FIASI President
• Monica Aggarwal, FIASI, Vice-Presiden
• Mark Howard, FIASI, Secretary
• Henry Shilling
• Diane Vazza

Welcome Remarks:

• Monica Aggarwal, CFA Managing Director, Fitch Ratings and Vice President, FIASI Board of Directors

The Macro Outlook: What Else Can 2020 Bring?

Moderator: 

• Joyce Chang, Chair of Global Research, JP Morgan

Panelists: 

• Michelle Meyer, Managing Director, Head of U.S. Economics at BofA Global Research
• Priya Misra, Managing Director, Global Head of Rates Strategy at TD Securities
• Marilyn Watson, Managing Director, Head of Global Fundamental Fixed Income Strategy, BlackRock

Asset Class Specifics: Drivers for the Investment Grade, High Yield, Loan, and Emerging Markets

Moderator: 

• Erin Lyons, Co-Head US Investment Grade Research, CreditSights, FIASI Board Member

Panelists:

• Anupam Damani, CFA, Portfolio Manager, Head of International and Emerging Markets Debt Sector Team, Nuveen
• Monica Erickson, CFA, Portfolio Manager, Head of Investment Grade Corporate Credit, DoubleLine
• Samantha Milner, Partner, Portfolio Manager and Head of US Liquid Credit Research, Ares
• Elaine Stokes, Executive Vice President, Portfolio Manager and Co-Head of the Full Discretion, Loomis, Sayles & Company

• Moderator and panelist: David Hendler, Founder & President of Viola Risk Advisors, LLC.
• Panelists:
  • Christopher Wolfe, Managing Director and Head of North American Banks, Fitch Ratings.
  • John Giordano, Managing Director and Head of Global Credit Research: Investment Grade, High Yield & Capital Securities, Cantor Fitzgerald.
  • Joseph Di Carlo, Senior Financials Analyst, MetLife Investment Management

• Moderator: Ralph DeCesare, TD Asset Management
• Panelists:
  • Marie Diron, Moody's Corporation
  • Roberto Sifon-Arevalo, S&P Global Ratings
  • Tony Stringer, FitchRatings
  • Thomas Torgerson, Morningstar | DBRS

Moderator:  Henry Shilling, Sustainable Research and Analysis LLC

Panelists: 

• Alessia Falsarone, PineBridge Investments
• Joshua Linder, APG Asset Management
• Steve Nichols, Bank of America Merrill Lynch

Mark Zandi
Chief Economist of Moody's Analytics, co-Founder of Economy.com

Mark discussed his views on the US economy and his special insights into the ADP National Employment report, released that morning.

James Grant
Founder: Grant's Interest Rate Observer
FIASI Hall of Fame Member

Presented by:  Martin Fridson, CFA

Moderator: Jerry van Koolbergen, DBRS Morningstar

Panelists:

• Oliver Dunsche, BNP Paribas
• Martha Gurwit, Antares Capital
• Sajal K. Srivastava, Triple Point Capital

James A. Bianco, President of Bianco Research, L.L.C.