(New York)

The bond market has had a good year. For the last several months, yields have been falling and corporate bonds have seen big gains this year thanks to better earnings and ratings upgrades. Munis have been a big success too. But one area has been even hotter: ESG bonds, which have will see over $1 tn of issuance this year. To put that in perspective, it would be more than double what was issued in 2020. JP Morgan explained the big surge in ESG best, with their head of ESG debt capital markets saying “What began with ‘why should I issue?’ is now ‘why aren’t you? … your absence in the market says something now”.

FINSUM: ESG is fully mainstream now and seems to be gathering more and more assets/issuance. What will this do to issuance in clear non-ESG sectors?