Bloomberg and MSCI has announced the expansion of the Bloomberg Barclays MSCI ESG Fixed Income index suite with the global launch of nine environmental, social and governance (ESG) high yield indices.
The indices incorporate ESG considerations in underlying fixed income indices and are co-branded as the Bloomberg Barclays MSCI ESG High Yield indices. The family of high yield bond benchmarks include three variants across US, Pan-Euro, and Global:
- The Bloomberg Barclays MSCI High Yield SRI Indices: designed to exclude issuers with substantial revenue derived from sources such as adult entertainment, alcohol, gambling, tobacco, controversial military weapons, civilian firearms, nuclear power, and genetically modified organisms (GMOs).
- The Bloomberg Barclays MSCI High Yield Sustainability Indices: designed to include issuers with higher MSCI ESG Ratings.
- The Bloomberg Barclays MSCI High Yield ESG Weighted Indices: designed to use MSCI ESG Ratings to adjust issuer market weights.
"With ESG becoming increasingly integrated into investors' workflows, we are always working to expand our ESG offerings to meet this demand - in this case with our new ESG High Yield indices," said Chris Hackel, index product manager, Bloomberg. "Our longstanding partnership with MSCI has provided investors with a broad portfolio of ESG index solutions, and we are excited to evolve it further to include a solution for high-yield bonds."
"As investors increasingly pursue long-term, sustainable investment approaches, there is more demand for ESG coverage and transparency within the fixed income asset class. We are therefore pleased to address this demand by collaborating with Bloomberg to introduce nine new indices leveraging our expanded high yield ESG coverage," said Eric Moen, head of ESG Products for MSCI ESG Research. "Through this collaboration, we are providing investors with the tools and transparency they need to effectively integrate ESG considerations into their investment processes."
The Bloomberg Barclays MSCI ESG Fixed Income index suite, which includes a range of investment grade, aggregate, corporate index and now multi-currency, high yield benchmarks, is currently available for investors on the Bloomberg Terminal.