ESG bond market still offering investment opportunities

In Kürze

After years of strong growth, the consolidation in the ESG bond market continued last year. The premium investors are willing to pay for ESG bonds has changed little in 2023. In this paper, we take this as an opportunity not only to trace and assess the latest developments but also to consider how the ESG bond market will develop in 2024, focusing on the euro area (EA) government sector.

Highlights:

  • Global ESG bond issuance decreased slightly in 2023, with the euro remaining the primary ESG funding currency, although its relative importance declined moderately.
  • Issuing activity has been livelyand higher than in previous yearsyear-to-date, but we expect ESG government bond issuance by governments to be at around the previous year's level for the full year 2024.
  • France is expected to remain the top ESG issuer in the euro area in 2024. We anticipate that green bonds will become more important in the euro area government sector, at the expense of social bonds.
  • The premium for ESG bonds ('greenium') generally remained low throughout 2023, with no clear trend, and varied over time and amongbonds. Despite the greenium, there are still opportunities to invest in ESG bonds without a yield disadvantage in sovereign and SSA (supranationals, sub-sovereigns and agency) segments.

 

Download the full publication below

ESG bond market still offering investment opportunities
Picture

© Generali Investments, alle Rechte vorbehalten. Diese Website wird von der Generali Investments Holding S.p.A. als Holdinggesellschaft der wichtigsten Vermögensverwaltungsgesellschaften der Generali Gruppe zur Verfügung gestellt, die direkt oder indirekt die Mehrheitsbeteiligung an den unten aufgeführten Gesellschaften hält (im Folgenden gemeinsam "Generali Investments"). Diese Website kann Informationen über die Tätigkeit der folgenden Gesellschaften enthalten: Generali Asset Management S.p.A. Società di gestione del risparmio, Infranity, Sycomore Asset Management, Aperture Investors LLC (einschließlich Aperture Investors UK Ltd), Plenisfer Investments S.p.A. Società di gestione del risparmio, Lumyna Investments Limited, Sosteneo S. p.A. Società di gestione del risparmio, Generali Real Estate S.p.A. Società di gestione del risparmio, Conning* und unter deren Tochtergesellschaften Global Evolution Asset Management A/S - einschließlich Global Evolution USA, LLC und Global Evolution Fund Management Singapore Pte. Ltd - Octagon Credit Investors, LLC, Pearlmark Real Estate, LLC sowie Generali Investments CEE. *Einschließlich Conning, Inc, Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc, Goodwin Capital Advisers, Inc. (zusammen "Conning").