High inflation and rapidly rising interest rates have injected a level of turbulence into world markets not seen for years, leading to caution generally among borrowers.
Governments in the euro market have raised over 40 billion euros from green bonds so far this year, according to ING Bank, just above the 39 billion in the comparable period of 2021. It has cut its forecast for overall green bond sales this year to $500 billion, down around 10% from last year. While companies are often opportunistic borrowers and more likely to change funding plans as market conditions change, sovereigns - having to fund state budgets - are less flexible.
"When I look at our strategies for green bonds, we have record inflows this year, which is remarkable because with most regular fixed income strategies they are all facing outflows," said NN Investment Partners' Bos.
They are about to enter a desperately cold winter with far less energy than they need and STILL they hitch their wagon to that horse...