This study reveals that green bonds staged a faster recovery than their conventional counterparts, despite showing no such advantage during the preceding downturn. Sector-specific analysis shows green bond outperformance in Utilities and Real Estate, especially in the US, where the scarcity of green bonds may be fuelling their rally.
The findings suggest that green bonds may present opportunities to investors in times of market turmoil, especially if they are able to navigate fluctuating ‘greenium’ dynamics.
