Deep Dive: Popularity of green bonds edges up despite fixed income pain

Market now worth around $1trn

clock • 4 min read

Green bonds have seen a large uptick in interest and issuance in recent years, and despite the volatility that has gripped fixed income markets over the past 12 months, experts are still seeing opportunities in the asset class.

As markets battle against persistent inflation and increased monetary policy tightening, 2022 has been a difficult period for bond investors, with potential for bond prices to drop further as central banks continue their interest rate hikes.  In the face of a painful year for fixed income markets, the popularity of green bonds has continued to rise. In September alone, global sales of green bonds rose to $45bn, according to data from Bloomberg.  Richard Carter, head of fixed interest research at Quilter Cheviot, said that even the UK's tap of its existing 2053 green gilt was 6.5x over...

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