In the know with Invesco: Exploring climate scenarios, bond market flexibility and the Swiss shift

In the know with Invesco: Exploring climate scenarios, bond market flexibility and the Swiss shift

For professional investors only.

?In this week's edition, we focus on scenario analysis and climate-related data. Our Head of EU Government Relations & Public Policy, Elizabeth Gillam, assesses the Bank of England's (BoE) Climate Biennial Exploratory Scenario, which you can find here. The Bank concluded that UK banks and insurers have made good progress on climate risk management but still have more to do to understand and manage their exposure to risks, she writes in her review, which you can read here?. But the BoE recognised that scenario analysis is in its infancy and there remain significant data challenges, she adds. This echoes the view of Cathrine de Coninck-Lopez, Invesco’s Global Head of ESG (environmental, social and governance). In her overview of climate-related disclosures, she says that there are limitations around data quality and consistency. “Garbage in, garbage out,” as the saying goes.

In our latest Bitesized Bonds installment, we take a look at elevated risks in the bond market. For Fund Manager Stuart Edwards, flexibility is key. He shares his thoughts. And all in under three minutes. Watch the video now

And finally, Kristina Hooper, Invesco’s Chief Global Market Strategist, turns her attention to persistent, widespread inflation and quickly rising inflation expectations. The US Federal Reserve and BoE have both, rather unsurprisingly, raised interest rates in an effort to combat inflation, she says. But in a momentous move - the first in 15 years - even the usually conservative Swiss National Bank raised interest rates by 50 basis points. Find out more

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