Portfolio analysis

Green bond comeback: one month after “Liberation Day”

Written by Kamesh Korangi

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We track the relative performance of green and non-green bonds in the period of market recovery after the initial sell-off triggered by President Trump’s “Liberation Day” tariffs announcement. The analysis covers some $11 trillion in investment grade bonds across Europe and the US.

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.

About the author

Kamesh Korangi

Kamesh Korangi

Managing Director, Head of Portfolio Strategy

Kamesh is an experienced credit derivatives and bond trader who leads the development of AFII’s portfolio analytics tool, Co₂liseum. He was previously a market maker and credit analyst at NatWest Markets, and holds a PhD in deep learning.

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