Home
About us
Projects
Publications
Newsletters
Conferences
Media
News
Contact
Search
Login
News
Search
Sign up for Newsletter
5 October 2007
The Subprime Meltdown - The Extra Financial Angle
Source: EAI NEWSLETTER – September, 2007
In October 2006, when Fitch, Moody™s, and S&P still rated the sub-prime market as essentially secure and mainstream brokers were yet to cover the coming crisis, one extra-financial research firm anticipated the sub-prime meltdown. In line with its extrafinancial mandate, Innovest Strategic Value Advisors analysed sub-prime products from the position of the target customers. Innovest concluded that the sub-prime mortgages were not affordable and highlighted the increased risk of defaults with consequent impacts for the banking sector and other sectors exposed to sub-prime lending.
Innovest predicted that the impacts would not be limited to the retail banking sector as mortgage backed securities are sold off to capital markets and that a spike in foreclosures would therefore reverberate in capital markets. Shareowner activists were engaged with banks on predatory lending long before the sub-prime crisis climaxed. And now, there is growing awareness that disclosure is a key pre-requisite for greater market confidence.
Going forward, many mainstream and social investors are likely to find common cause in advocating regulatory relief in the form of loan modifications, which have already been called for by Congress, as well as federal, state, and local regulators. Regulatory reform affecting rating agencies is also on the agenda in the EU and US. Could rating agencies be forced to consider extrafinancial factors? Not before time, some would argue.
For further details please visit,
News
22 October 2007
New Resource Bank Lands $10M Investment from State of Calif. for Green Projects
22 October 2007
Study Finds Greener Companies Outperform Rivals
17 October 2007
WBCSD and IUCN Publish New Report on Making Markets for Ecosystem Services
16 October 2007
U.K.''s Top Companies Show Progress on Reporting, More Needed: Report
16 October 2007
GRI Financial Services Sector Supplement out for public comment
15 October 2007
Wall Street Takes Al Gore''s Cue on Climate Change
12 October 2007
Green investors: Climate change must feature in trading statements
11 October 2007
Merrill Lynch and Trucost index to track carbon footprint
5 October 2007
EIRiS Sees Interest in ESG Grow Among Pension Funds in Latest Report
5 October 2007
The Subprime Meltdown - The Extra Financial Angle
[
1
][
2
][
3
][
4
][
5
][
6
][
7
][
8
][
9
][
10
][
11
][
12
][
13
][
14
][
15
][
16
][
17
][
18
][
19
][
20
][
21
][
22
][
23
][
24
][
25
][
26
][
27
][
28
][
29
][
30
][
31
][
32
][
33
][
34
][
35
][
36
][
37
][
38
][
39
][
40
][
41
][
42
][
43
][
44
][
45
][
46
][
47
][
48
][
49
][
50
][
51
][
52
][
53
][
54
][
55
][
56
][
57
][
58
][
59
][
60
][
61
][
62
][
63
][
64
][
65
][
66
][
67
][
68
][
69
][
70
][
71
][
72
][
73
][
74
][
75
][
76
][
77
][
78
][
79
][
80
][
81
][
82
][
83
][
84
][
85
][
86
][
87
][
88
][
89
][
90
][
91
][
92
][
93
][
94
][
95
][
96
][
97
][
98
][
99
][
100
][
101
][
102
][
103
][
104
][
105
][
106
][
107
][
108
][
109
][
110
][
111
][
112
][
113
][
114
][
115
][
116
][
117
][
118
][
119
][
120
][
121
][
122
][
123
][
124
][
125
][
126
][
127
][
128
][
129
][
130
][
131
][
132
][
133
][
134
][
135
][
136
]
Sustainable Investment Research Platform
Provided by Webforum