CDS spreads rise sharply after ESG downgrades — most notably within the social pillar and among financially constrained firms — while upgrades show little effect. Positive ESG sentiment and transparency can mitigate these adverse credit impacts.
View the full article ESG Ratings, ESG News Sentiment, and Firm Credit Risk Perception
In Practice Member Companion Brief
Read Brief
CFA Institute Premium Member Content
This is available to the following CFA Institute membership classes: CFA charterholders, Professionals, and Affiliates.