Macro Analysis /
United Kingdom

GB : Strategy - Carbon risks and credit spreads

    Joachim Klement
    Joachim Klement

    Analyst - Strategy, Accounting, and Sustainability (SAS)

    CGS-CIMB
    25 March 2022
    Published by

    I have reported before that there is a bit of a conundrum in fixed income markets when it comes to the influence of greenhouse gas emissions and climate change risk. On the one hand, in the cost of loans to different firms. On the other hand, green bonds trade at the as conventional bonds in secondary markets. It seems as if bond markets are not differentiating between “green” and “brown” companies. This is all the more surprising because seem to make just that differentiation.