Oil and gas ABS market grows despite push for ESG

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By Jennifer Kang
16 Jan 2020

Securitizations tied to oil and gas-related cash flows have emerged in recent months, despite growing support from the buy side for socially responsible investments (SRI). Though they run contrary to environmental, social and governance (ESG) principles, issuance of oil and gas royalty ABS may persist as long as the deals offer attractive yields, or until ESG investments pay a premium to brown ABS. Jennifer Kang reports.

Interest in SRI from capital market participants is booming. In a recent survey, Fitch Ratings found that about half of the banks it surveyed had made loans on assets affected by the application of ESG policies.

But at the other end of the sustainability spectrum is an emergence of ...

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