As interest rates rise, global financial and economic risks also rise.
This raises concerns of “Black Swan” financial events – negative events that are difficult/impossible to predict – like the one seen earlier this year which triggered the collapse of Silicon Valley Bank.
Sadly, it was the renewable sector that faced such an event in Q3. The latest surge in financing costs over the quarter triggered a spate of warnings across the sector, including from two of our investments, Orsted and Nextera, and wind turbine manufacturer Siemens Gamesa.
Interested in learning more?
Download the full report to find out on the renewable sector’s brutal de-rating, the particular problems faced by off-shore wind firms, and why there are signs of some discipline retuning to the market.