GSS issuance fell 75% in EUR even as overall volumes rose 48%, as funding urgency overrode sustainability labels. Energy outperformed sharply — European energy bonds widened just 4% against a broader 13% — a headwind for transition portfolios typically underweight the sector.
Financials underperformed, and transition scoring inadvertently concentrates exposure there. Green bonds widened more than non-green equivalents: labels do not provide uniform protection. Deeper issuer-level transition analysis outperformed simple label-based screening.
