Coronavirus crisis offers green and social bonds chance to prove their worth

Green bond issuance slows in market turmoil, while social bonds offer means to finance Covid-19 responses.

The ups and downs of green bond issuance

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Green bonds have held up relatively well in the market turmoil of recent weeks. 

The ICE BofA Green Bond Index lost 5% in total return between the end of February and March 20, while the broader ICE BofA Global Corporate Index was down 11%. 

Much of this outperformance down to the defensive nature and higher ratings of the constituents of the Green Bond Index compared with its corporate counterpart: the former includes a significant number of industrials and utilities.

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