Green/ESG high yield bonds issued by US corporates trade up in secondary
Source: Dealogic, Markit
Green and environmental, social, and corporate governance-linked high yield bonds issued in US dollars have taken off in the first half of 2021 as more issuers opt to adhere to the Green Bond Principals in order to tap into a growing pool of environmentally conscious investors who believe that applying such standards to portfolios has the potential to increase returns. While the market for green bonds has been around since 2008, US corporate issuers are just now becoming prominent players in the market dominated primarily by overseas companies and government agencies.