The shift of U.S. government control to the Democratic Party this month could give an added jolt to sales of corporate bonds that finance environmentalEnvironmental criteria consider how a company performs as a steward of nature. and socially responsible projects.
With the Democrats now gaining control of the Senate, President-elect Joe Biden’s proposed programs and initiatives to, among other things, combat climate change and invest in infrastructure are more likely to happen. Private sector investments linked to these kinds of plans could result in greater issuance of environmentalEnvironmental criteria consider how a company performs as a steward of nature., socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. bonds, according to Stephen Liberatore, head of fixed-income ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. and impact investing strategies at Nuveen.
“Leadership that’s better-focused on environmentalEnvironmental criteria consider how a company performs as a steward of nature. and socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. issues will help drive companies to understand what’s expected of them and how they can approach ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments.,” said Liberatore. Nuveen oversees about $1.1 trillion in assets globally, including around $15 billion in ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. and impact dedicated debt strategies.
Any increase in issuance of corporate ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. securities will come in a year where regular investment-grade company bond sales are expected to decline. But overall green, socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. and sustainability-linked bond issuance could rise by about a third in 2021 driven in part by government sales, said Marilyn Ceci, global head of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. debt capital markets at JPMorgan Chase & Co. in October, after already having jumped last year.
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Money managers’ demand for ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. notes is growing, as socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. and racial issues that were amplified during the pandemic have focused more investors on how their money might make the world better while earning a return, according to Andrew Karp, head of investment grade capital markets at Bank of America Corp. This year’s issuance will probably come from a range of industries, including health care and technology, he said.
“We know from having conversations with our clients that ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. is taking on increased prominence and companies appear to be more focused on using the markets to express their view on the importance of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments.,” Karp said.
That growing demand is already showing up in issuance data. Companies raised a record $55 billion in dollar-denominated ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. notes last year, almost double the roughly $30 billion raised in 2019, according to data compiled by Bloomberg. Bank of America was the biggest underwriter of the bonds last year, according to a ranking compiled by Bloomberg.
ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. corporate bond issuance is dominated by blue-chip utilities and banks but Karp expects more high-yield companies to tap the market as buyers seek greater returns.
The fastest-growing part of the ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. market this year will probably be sustainability-linked bonds, according to Steven Nichols, head of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. capital markets for the Americas at Bank of America. Proceeds of these notes can be used for just about anything, but the issuer pledges to meet some sort of socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. or environmentalEnvironmental criteria consider how a company performs as a steward of nature. target, such as cutting carbon emissions across the company by a particular amount. They can be a good option for companies that might not have specific projects to finance but still want to make their businesses more sustainable.
“This is particularly relevant for issuers in sectors where most of their environmentalEnvironmental criteria consider how a company performs as a steward of nature. and/or socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. impact is in their supply chain, such as retail, consumer products or food and beverage,” said Nichols.
Traditional sustainability bonds, which fund specific projects, are also likely to see more issuance as well, Nichols said. Alphabet Inc., Google’s parent, sold $5.75 billion of the notes in the largest corporate bond sale dedicated to ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. purposes last year to fund Black entrepreneurs, Covid-hit businesses and green buildings among other eligible projects.
Dollar dominance
JPMorgan expects this year to be the first time more green, socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates., and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. debt is sold in dollars than euros. Regulation and rising demand from dedicated ESG-mandated funds are fuel for growth, the bank’s analysts wrote in a note in October.
Wall Street banks will probably continue to be big issuers of the notes, too. Last year Citigroup Inc. issued the biggest socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. bond from the private sector meant for affordable housing, Bank of America became the first U.S. financial institution to sell bonds with all proceeds explicitly linked to tackling the new coronavirus and JPMorgan issued green bonds for the first time.
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