Brandan Holmes from the Financial Institutions team examines the growing trend among European insurers to cut their underwriting and investment exposure to the fossil fuels sector, especially thermal coal. Lower fossil fuel exposure is credit positive for insurers as it makes them less likely to face climate change-related liabilities, while reducing the risk of their assets losing value as the transition to a low-carbon economy progresses.
Julie Ng and Hemal Shah from the Structured Finance team discuss the extent of US debtors’ exposure in European CLOs. They outline how the presence of US obligors increases geographical diversification and improves credit quality of European CLOs.
Colin Ellis and Madhavi Bokil of the Credit Strategy & Research team discuss some of the forces that are dragging down interest rates globally and the policy challenges that the persistent low rate environment pose for major central banks.