The green bond market: from inception to today

Author: Steven Hur, Head of Credit Research, AMP Capital

Green bonds have been in the marketplace for a little over a decade – a slither of time compared to bank lending or government bonds. As such, the green bond market remains relatively immature, notwithstanding some substantial progress over the past five years. But it is undoubtedly among the fastest growing of the fixed income instruments.

The critical question for green bonds remains measurement – how to show the tangible environmental benefits emanating from the funds raised. Globally, banks and government agencies are working together to better define those benefits, encouraged by the strength of demand for green bonds.

According to Moody’s Investors Service, issuers brought $US47.2 million of green bonds to the global market in the three months to the end of March, 2019, a year on year increase of 40 per cent, and Moody’s now forecasts that this calendar year, issuance of green bonds will hit $US200 billion.


(Click on the cover page image for the full document)


Most viewed in recent weeks

Most investors are wrong on dividend yield as income

The current yield on a share or trust is simply the latest dividend divided by the current share price, an abstract number at a point in time. What really matters is the income delivered in the long run.

My 10 biggest investment management lessons

A Chris Cuffe classic article that never ages. Every experienced investor develops a set of beliefs about how markets operate.

Lessons from the Future Fund for retail investors

The Annual Report from Australia's sovereign wealth fund reveals new ways it is investing in fixed income and alternatives. The Fund considers its portfolio as one overall risk position with downside protection in one asset class allowing more risk in another.

Four companies riding the healthcare boom

There are strong demographic trends in ageing and consumer spending and investing in the right healthcare companies can ride this wave as well as produce better health outcomes for people. 

Five reasons SMSFs are making asset allocation changes

Substantial changes are underway in SMSFs which until recently held a narrow range of assets dominated by cash, term deposits and Australian equities. Trustees have never faced so many choices.

All’s fair in love and super: why couples should equalise super

Changes implemented by super reforms since 1 July 2017 have brought greater incentives for spouses to equalise their superannuation balances, including tax and estate planning benefits.

BGC Fixed Interest



Special eBooks

Specially-selected collections of the best articles 

Read more

Earn CPD Hours

Accredited CPD hours reading Firstlinks

Read more

Pandora Archive

Firstlinks articles are collected in Pandora, Australia's national archive.

Read more