Global sustainable bond issuance slowed faster than the broader market in the first quarter, hit by a surge in market volatility after Russia invaded Ukraine and tightening monetary policy around the world.
The slowdown followed record issuance of bonds linked to environmental or social goals in 2021, data from Refinitiv showed.
Total issuance of green, social and sustainability bonds, as well as those issued by companies with a sustainable business model, such as renewable energy, totalled $231.7 billion in the first quarter of 2022, a 19% drop over last year.
Issuance across the broader market fell 5% to $2.49 trillion over the same period.
While assets of all stripes have long been helped by the ultra-easy monetary policy of the US Federal Reserve and other central banks, the first quarter saw signs of tightening across the globe.
“Certainty of Fed rate hikes brought fear to investors in the fixed income markets,” said David Falk at Shelton Capital Management.
Published in The Express Tribune, April 9th, 2022.
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