Anthropocene Fixed Income Institute

There are now two (sic!) liquid bonds in EUR with designated India country of risk. We review the Power Finance green bond that came in mid-September and argue that the market could take more supply.

(30 Sep 2021)

The SEK domestic market has been big in green, real-estate bonds. With very poor performance from the sector as of late, we make the point that it is related to technical concentration factors in SEK, and less likely to have repercussions in global green bond valuations.

(27 Jun 2022)

Auto manufacturers are a high-emitting capital-intensive sector. A number of auto manufacturers have issued green bonds to fund investments in clean transport. These green bonds do not always price with as substantial a greenium as seen in other sectors. We present three ways for investors to support the sector's transition through bond positioning.

(17 Aug 2022)

Last week (28 Sep 2022) saw unprecedented volatility in the GBP bond market. The BoE tapped their 30 year green gilt, while also beginning a long-dated purchase programme to support long-dated yields. We ask ourselves how corporate sterling green bonds performed amid this volatility.

We observe little greenium in our featured issuers, and little differentiation in behaviour in the past period, both in terms of performance but also volatility.  

(3 Oct 2022)

Carbon emissions accounting will play an important role in the climate transition, given "what you don't measure, you can't manage". We present the Forensic Carbon Accountant, designed to promote transparent and useable emissions disclosures, to support investors in reducing the climate footprint of their portfolios.

We look at green bonds, and ask whether current emissions reporting practices incentivise the correct behaviour.

(28 Jun 2023)

 Thames Water bonds have been trading poorly on news of its financial difficulties. It has £2.8bn green bonds, nearly 25% of outstanding bonds, whose investors have lent capital for sustainable investment.

We analyse the current situation, and specifically the implications for green bond investors.

Green bond investors are pari-passu with vanilla debt in a default. They are exposed to the full operations of the issuer, and not just the sustainable investments that their capital supported.

(4 Jul 2023)

 As extreme weather events sweep the globe, the maligned UK water sector is reporting annual results.

Half of companies have reported exceptional cost increases due to extreme weather events in 2022, with two more citing it as a challenge.

(18 Jul 2023)