Investors’ sustainability turn-off and emerging markets’ stunning revival
- Investors bored with sustainability targets
- How green was my allocation? Bookrunners won’t tell you
- Can emerging market borrowers keep up the comeback?
There’s a clash brewing in the sustainability-linked bond market with investors losing interest in issuers’ KPI targets. We ask why these important sustainability targets are missing the mark and what the consequences are for the SLB market.
We also look into the problems surrounding another key element of the socially responsible bond market — demonstrating that green bonds are going to green funds.
Finally, we focus on emerging market bonds, which in terms of issuance have gone from a dreadful 2022 to smashing records so far in 2023. We investigate whether such a pace can continue after a huge week of economic data and central bank interest rate announcements and which issuers can regain access to the market.