ATLANTA & NEW YORK– With the broader adoption of ESG and sustainable investing by extra firms and traders, a rising variety of market members are searching for to grasp the potential social impression of their funding.
That is significantly the case within the municipal bond market, the place proceeds are used to construct public works, parks, faculties, libraries and different infrastructure. When assessing comparable bonds issued by totally different native governments, contemplating how these funds might impression the inhabitants on the municipal degree might help traders and different market members make extra knowledgeable choices about the place to allocate their capital.
“These new social impression scores present a deeper degree of socioeconomic and demographic information on the municipal bond market, enhancing the decision-making course of for traders as they execute their sustainable and socially-conscious investing methods,” stated Lynn Martin, President of Mounted Revenue and Knowledge Companies at ICE.
“By constructing on risQ’s experience with geospatial local weather and social information, we’re capable of present market members with the transparency they should quantitatively analyze and evaluate securities and the potential social impression of investments throughout totally different communities.”
The social impression scores leverage dozens of variables from a number of public information sources and peer-reviewed statistical strategies to assist quantify a number of dimensions of socioeconomic vulnerability and want.
These scores are designed to sign the potential social advantage of an funding inside a particular space, with greater scores indicating {that a} monetary funding in a particular group is predicted to have a bigger potential social impression than an funding in a group with a decrease rating. As soon as calculated, the scores are mapped to ICE’s U.S. municipal bond reference information, offering an extra metric for purchasers to make use of to judge an funding or a portfolio.
The rating inputs embody information capturing affluence, poverty, schooling, employment, housing prices, racial variety, and well being challenges. Aggregating these information factors and mapping them to particular person bonds could make it simpler to match cohorts and the potential social impression of an funding alternative.
“Buyers and market members need methods to quantify and appropriately perceive the potential impression of their funding, and this new service that we’ve created with ICE helps try this,” stated Evan Kodra, CEO of risQ. “Whether or not traders are aligning their funding program with their values and mission or in the event that they’re searching for to raised quantify and perceive the social impression of potential funding alternatives, these sources present clearer insights into these objectives.”
Intercontinental Alternate, Inc. (NYSE: ICE) is a Fortune 500 firm that designs, builds and operates digital networks to attach folks to alternative. We offer monetary expertise and information providers throughout main asset courses that provide our prospects entry to mission-critical workflow instruments that improve transparency and operational efficiencies. We function exchanges, together with the New York Inventory Alternate, and clearing homes that assist folks make investments, elevate capital and handle danger throughout a number of asset courses.
Our complete mounted earnings information providers and execution capabilities present data, analytics and platforms that assist our prospects capitalize on alternatives and function extra effectively. At ICE Mortgage Know-how, we’re reworking and digitizing the U.S. residential mortgage course of, from shopper engagement by mortgage registration. Collectively, we rework, streamline and automate industries to attach our prospects to alternative.
Logos of ICE and/or its associates embody Intercontinental Alternate, ICE, ICE block design, NYSE and New York Inventory Alternate. Data concerning extra logos and mental property rights of Intercontinental Alternate, Inc. and/or its associates is situated right here. Key Data Paperwork for sure merchandise coated by the EU Packaged Retail and Insurance coverage-based Funding Merchandise Regulation will be accessed on the related change web site beneath the heading “Key Data Paperwork (KIDS).”
Secure Harbor Assertion beneath the Non-public Securities Litigation Reform Act of 1995 — Statements on this press launch concerning ICE’s enterprise that aren’t historic information are “forward-looking statements” that contain dangers and uncertainties.
For a dialogue of extra dangers and uncertainties, which might trigger precise outcomes to vary from these contained within the forward-looking statements, see ICE’s Securities and Alternate Fee (SEC) filings, together with, however not restricted to, the chance elements in ICE’s Annual Report on Kind 10-Ok for the yr ended December 31, 2020, as filed with the SEC on February 4, 2021.
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