We do not have a large allocation to corporate bonds since we will only invest in those corporate bonds where we see an identifiable and impactful use of proceeds. If there is a clear use of proceeds that can be aligned to one or more of our 18 impact themes, the team focuses on the ability for the borrower to meet its debt obligations.  This is done by analyzing the offering statements and corresponding financial information, and then discussions with the banker/issuer to get further insight or clarifications.  Emphasis is placed on redemption features and/or covenants, any credit enhancements, and the sources that will be used for the payment of interest and repayment of principal. The process also serves as a verification of the purpose of the project to ensure that the impact criteria are indeed met. We need to have transparency into the use of the bond's proceeds to ensure the funds raised will provide provide environmental and social outcomes that can be measured, monitored, and tracked. 

The team will also ensure there is no excessive ESG-related risk in regards to the issuer.  We will not invest in corporate bonds issued by companies involved in fossil fuel exploration and production or any activity related to coal, tobacco, chemical manufacturing, weapons, and prison management, among others.

We do not have a large allocation to corporate bonds since we will only invest in those corporate bonds where we see an identifiable and impactful use of proceeds. If there is a clear use of proceeds that can be aligned to one or more of our 18 impact themes, the team focuses on the ability for the borrower to meet its debt obligations.  This is done by analyzing the offering statements and corresponding financial information, and then discussions with the banker/issuer to get further insight or clarifications.  Emphasis is placed on redemption features and/or covenants, any credit enhancements, and the sources that will be used for the payment of interest and repayment of principal. The process also serves as a verification of the purpose of the project to ensure that the impact criteria are indeed met. We need to have transparency into the use of the bond's proceeds to ensure the funds raised will provide provide environmental and social outcomes that can be measured, monitored, and tracked.  

The team will also ensure there is no excessive ESG-related risk in regards to the issuer.  We will not invest in corporate bonds issued by companies involved in fossil fuel exploration and production or any activity related to coal, tobacco, chemical manufacturing, weapons, and prison management, among others.

The team focuses on the voluntary and non-voluntary principal prepayments and any potential delinquencies. For agency MBS, our focus on low-to-moderate income borrowers has historically provided more consistent prepayment protection than what external pricing models would suggest, alleviating some of the issues around accelerated cashflows when rates fall and generating better total returns.We need to have transparency into the use of the bond's proceeds to ensure the funds raised will provide provide environmental and social outcomes that can be measured, monitored, and tracked.  Each bond goes through our rigorous research process which includes impact and financial analysis and is tageed by geography and with one or more of our eighteen impact themes. 

Impact/ESG is integral to all aspects of investment activity at CCM. Our goal is for each portfolio to have maximum alignment with CCM’s Impact Themes. We perform a use-of-proceeds analysis of each debt security under consideration. Our tools for alignment achievement vary by asset class. For corporate securities issued by financial institutions, we focus on the issuer’s overall ESG risk intensity using proprietary and third-party research data. For U.S. banks, we also look at the firm’s Community Reinvestment Act (CRA) test score from government regulators.

Impact/ESG is integral to all aspects of investment activity at CCM. Our goal is for each portfolio to have maximum alignment with CCM’s Impact Themes. We perform a use-of-proceeds analysis of each debt security under consideration. Our tools for alignment achievement vary by asset class. For corporate securities, we focus on the issuer’s overall ESG risk intensity using proprietary and third-party research data. In some instances, we look at a corporate debt offering with attractive impact purpose that is issued by a company that we may not rate highly on overall ESG characteristics. Our policy is to look at these on a case-by-case basis and make decisions after robust internal discussions.

Impact/ESG is integral to all aspects of investment activity at CCM. Our goal is for each portfolio to have maximum alignment with CCM’s Impact Themes. We perform a use-of-proceeds analysis of each debt security under consideration. Our tools for alignment achievement vary by asset class. Securitized debt securities allow for the most detailed use-of-proceeds analysis as issuers typically share substantial granular detail about the collateral being securitized. Our proprietary impact database captures information at the whole loan level so that each dollar invested can be matched up against its specific purpose, geography and impact theme.