According to Portfolio Manager Jovita Razauskaite, 2020 has so far been a “one of a kind” year for green bonds. The market recovered quickly from a temporary dip in issuance in the initial phase of the Covid-19 pandemic and has not looked back since, hitting a new issuance record of EUR 67 billion in the second quarter. The volume is impressive but so is the diversity of issuers tapping the market.

In addition to AAA-rated sovereigns like Germany and Sweden launching their green bond programmes, the breadth of the corporate segment is steadily improving as more industrials issue green bonds. Despite the market’s impressive growth, demand is outstripping supply, resulting in oversubscribed new issues and spread compression. In this podcast, Razauskaite explores what is driving developments in this dynamic market and why the growth looks set to continue.