Reported about 1 year ago
Hedge fund veterans, led by Andrew Hohns' Newmarket Capital, are incorporating environmental, social, and governance (ESG) considerations into synthetic risk transfers (SRTs) as banks aim to offload credit risk to investors. Approximately 40% of Newmarket's flagship SRT fund now includes ESG or impact overlays, reflecting an industry trend towards sustainable finance. The integration of ESG features in SRTs allows banks to lower capital requirements while offering sustainable investment opportunities to institutional buyers like pension funds.
Source: YAHOO