Institutional Investor (June 28)
“Yields are negative in multiple European markets,” for both sovereigns and corporate bonds. “The zero bound has therefore been broken, proving that it is just that—a mere boundary, as opposed to an impenetrable threshold.” Given the demand for liability matching and quality assets, there’s no certainty that yields can’t fall further into negative territory. “All of this serves to highlight the strangeness of the world we now live in. Daily usage of words like ‘unprecedented’ and ‘exceptional’ renders them almost meaningless. In this case, however, they ring true. Corporate bond yields turning negative truly is unprecedented.”
Euromoney (July Issue)
Though they currently account for “less than 1% of the corporate bond market, green bonds have been attracting an awful lot of attention…. The Climate Bonds Initiative confidently predicts that total issuance could reach $40 billion by the end of this year and increase to $100 billion in 2015.”
