Investing responsibly in high yield – Tim Leary

Tim Leary joins us on the BlueBay Insights podcast to discuss how ESG factors do (and don’t) impact high yield investing.

We asked Tim:

1. Can you really be a high performer and limit your investible universe?
2. How do you mitigate the tracking error associated with ESG exclusions, namely fossil fuels?
3. Is there an appropriate high yield benchmark for ESG investors who are focused on climate risks?
4. In general, how does portfolio turnover in a HY ESG strategy compare to a conventional fund?
5. What’s your approach to managing downside?
6. Are there any complications associated with ESG strategies that general high yield approaches don’t face?
7. In terms of engagement, we typically think of this as being something more for equity holders. As a bond holder, what are the ways you engage with issuers?
8. What kind of responses are you getting from the companies you speak to in the high yield universe?
9. Sustainability-linked bonds are growing in popularity and we’ve seen some issuance in the high yield sector – do you think this is the beginning of a trend?