Bloomberg ESG Certification - Introduction to ESG and Sustainable Finance Questions and Answers Already Passed
Bloomberg ESG Certification - Introduction to ESG and Sustainable Finance Questions and Answers Already Passed A company in which of the following industries would be most likely to pass the screening process for a fund prioritizing ESG? A. Weapons defense B. Tobacco C. Technology D/ Fossil fuel C. Technology Explanation : When asset managers survey their clients on their investment preferences, they are learning that clients increasingly do not want their money supporting tobacco, weapons defense, or fossil fuels. Of the four choices provided, a technology company is the one most likely to remain in a fund that is ESG-oriented. A credit analyst has been tasked with adding more green bonds to his firm's portfolio without sacrificing yield, or spread value. He created this Fixed Income Worksheet on the Terminal function FIW that shows U.S. Electric bonds with a BBB+ to BBB- rating Then he used the Group By field to sort the data into green bonds (the green bubbles) and non-green bonds (blue bubbles). He also added a regression curve for the displayed bonds: the ones above the curve have a higher yield and the ones below it have a lower yield. In which pink lettered section is the analyst most likely to start his deeper credit research? A. Choice A. because CMS 4.75 is a green bond with the highest spread above the regression curve B. Choice C. because WEC 2.2 is a green bond with a spread below the regression curve C. Choice B, because AES 1.375 is a green bond with a spread above the regression curve D. Choice D, because these bonds have a l C. Choice B, because AES 1.375 is a green bond with a spread above the regression curve Explanation : On this screen, analysts typically focus on bonds that are in the top left as a starting point. Higher bubbles with a greater spread and a shorter maturity translate as more money faster. Choice A would be worthy of further investigation if it were a green bond, which the analyst has been tasked with finding. However, the key tells us it is not. Choice B is a green bond and, of the provided choices, it has a higher yield than many of the non-green bonds - it is certainly above the regression curve Choice C features green bonds as well; however, these are below the regression curve, which means they are not performing as well. Choice D shows bonds that are not performing as well and also have a longer duration. Choice B is the best choice for more research because it is a green bond that is performing better than most of the other non-green bonds. A management concept whereby companies integrate environmental and social concerns into their business. Companies aim to contribute
Written for
- Institution
- Bloomberg ESG Certification -
- Course
- Bloomberg ESG Certification -
Document information
- Uploaded on
- June 12, 2024
- Number of pages
- 29
- Written in
- 2023/2024
- Type
- Exam (elaborations)
- Contains
- Questions & answers
Subjects
-
bloomberg esg certification introduction to esg
Also available in package deal