IMD The Good Governance Crash Test Covid 19

Well-governed organizations have vastly overperformed poorly governed ones during the Covid-19 pandemic. Despite the vast difference in context, this is an exact repeat of the 2008 crisis. So why has governance become such a key differentiator?  We investigate with reference to:

• the source of over-performance of well-governed companies
• the quasi-permanent issues faced by poorly governed companies
• the demonstration that well-governed companies are the ones that address the best environmental (E) and social (S) aspects – in other words that a good ESG starts with a good “G”.

Full paper here

Other posts

Thoughts From the Divide:  Subjest to Change

BY JON WEBB
As the saying goes, “needs must when the devil drives”. We have no problem understanding the Fed’s decision to announce (at 7pm last night) that the details of the BTFP program needed to be altered. The problem was the overly juicy arbitrage, whereby banks could use the BTFP window to flip cash from the Fed into the RRP and pocket the not-insubstantial difference. We were impressed by the chutzpah involved in arbitraging two Fed facilities! Read more →

NDR Fixed Income Allocation Strategy May 2023 Update

BY BRIAN SANBORN
The NDR Fixed Income Allocation Strategy, Positioning Update Read more →

Thoughts From The Divide: Hold On Tight

BY JON WEBB
“It’s obvious that there’s going to be stress and losses”. The comment is from Janet Yellen’s comments this week and comes from the discussion of the ongoing CRE dumpster fire. Stress and losses aside, the Treasury Secretary was unruffled, following up with the comment, “I hope and believe that this will not end up being a systemic risk to the banking system.” Yellen did admit that size matters. While “The exposure of the largest banks is quite low,… there may be smaller banks that are stressed by these developments” Read more →
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