New data capability designed to help fixed income investors systematically assess transition risk and opportunity in sovereign debt portfolios.
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The Anthropocene Fixed Income Institute (AFII) today announces the launch of Co₂liseum sovereign transition analytics, a new data capability designed to help fixed income investors systematically assess transition risk and opportunity in sovereign debt portfolios.
Building on AFII’s Co₂liseum portfolio strategy and analytical system, the sovereign data supports investors in evaluating how countries are positioned for the energy transition, and how this may affect credit performance over time.*Co₂liseum is AFII’s portfolio analytics system for fixed income professionals seeking to manage the transition performance of their credit portfolios, combining quantitative climate metrics with portfolio construction tools and strategies.
Developed by AFII’s Portfolio team of experienced former traders and analysts, Co₂liseum is a unique system that offers investors an easy-to-use climate risk ranking methodology with model portfolios that demonstrate transition-focused investment strategies in real time.
The new sovereign transition analytics suite extends Co₂liseum beyond corporate credit to sovereign issuers, providing users with structured, comparable information on sovereign transition readiness and alignment. It links emissions and energy system data with policy signals and macro indicators, helping investors to:
- Compare sovereigns on climate transition risk exposure and net zero alignment.
- Track a portfolio’s sovereign transition profile over time relative to relevant benchmarks.
- Identify key contributors to transition risk across countries, sectors and instruments.
“The performance of sovereign bonds is increasingly tied to a nation’s climate readiness and resilience,” said Kamesh Korangi, Managing Director at AFII.
“Co₂liseum gives fixed income professionals transparent, practitioner-built analytics to bring transition risk into mainstream sovereign credit analysis and portfolio construction, using the same rigorous approach we apply in our hypothetical model portfolios."
Within Co₂liseum, users can upload their bond portfolios and apply AFII’s methodologies consistently across sovereigns and corporates, with instrument-level differentiation and clear treatment of data gaps and modelling assumptions.
Portfolio managers’ own frameworks can also be integrated to provide analytics for bond portfolios. The system provides portfolio-level scores for transition alignment, supports tracking of scores as portfolios evolve, and highlights the top contributors across key climate metrics.
For portfolio managers, Co₂liseum also offers hypothetical model portfolios maintained by AFII that apply climate factors in a market context, in real time with full transparency. These hypothetical allocations are intended to demonstrate how transition strategies can be integrated into fixed income portfolios while targeting competitive risk–return profiles.
Fixed income professionals can sign up to try the Co₂liseum platform and gain early access to its sovereign capabilities.
Prospective users can request access here. (Users remain fully responsible for their own assets and decisions).
*Disclaimer: Each Co₂liseum portfolio is hypothetical; each portfolio and the methodology are for informational and educational purposes only and are not investment recommendations. See the Co₂liseum website here, including our disclaimer notice.
Anthropocene Fixed Income Institute
The Anthropocene Fixed Income Institute (AFII) is a non-profit research organisation that empowers the global fixed income market to advance the transition to a net zero, nature-positive economy. Drawing on our experience as market practitioners,
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