Greenium: New Catalysts in 2022

The Greenium – the yield that investors concede to companies issuing a green bond compared to the performance they would have required from these same companies for a conventional bond with the same maturity - was long perceived as volatile, hovering in one direction or another according to the seasonality. But it finally became a key issue in 2020.

In this new study, we shall examine factors that may act as new catalysts for the Greenium in 2022.

Highlights

  • The dispersion of Greenium by sector is due to the number of green bonds and issuers
  • In 2022, we expect a major comeback for green senior preferred banking debt and covered bonds issued by banks
  • The big unknown in the Greenium “equation” remains the growth of Sustainability-Linked bonds, which flooded the primary market last year

Resources

This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted. Actual results may vary.

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