United States

Mind the gap: Creating an ESG framework for securitized assets

By Katie Prideaux, Yield Book's Sustainable Investment Analytics Lead

The securitization market accounts for over a quarter of the fixed income sector in the US, and yet integration of environmental, social and governance (ESG) measures remains a work in progress. Although the financial crisis of 2008 highlighted major need for responsible lending and servicing behaviours, predatory practices such as loan churning and excessive rates have shown to remain.

The market faces a unique set of challenges including:

US stocks knocked hardest as global recession fears flare

By Mark Barnes, PhD, and Christine Haggerty, Global Investment Research

Recession fears are stalking global markets, fanned by stubbornly high inflation and increasingly aggressive central-bank efforts to tame it. The resulting stampede from risky assets has been devastating for US stocks, which ranked among the worst-performing equity markets globally for the year so far. US small-caps and their growth-style offshoots have been hit especially hard.

Four decades of Russell Indexes Reconstitution

Russell Reconstitution, which occurs each year in June, is a top-to-bottom recalibration of the US equity market benchmarks and the membership of the entire Russell series of indexes. Reconstitution ensures that the indexes continue to accurately reflect the current state of equity markets and their market capitalization segments (large cap, mid cap, small cap, micro cap), industry breakdowns and style structure.

Given this continual evolution of the equity markets, the annual Russell Reconstitution: