10 min
Green and social bonds propelled by secondary market tailwind The Point: Professional investing in Australia with Perpetual
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- Investing
Issuance of green and social (or "impact") bonds more than doubled in 2021 but demand is still outstripping supply says George Bishay, portfolio manager with Pendal’s Income and Fixed Interest team.
Impact bonds provide a financial return as well as a positive impact on the environment or society.
“If you are able to get hold of them, they perform very well in the secondary market because everyone wants them,” Bishay says. “They outperform vanilla bonds due to this huge demand.”
“It’s a really powerful way to deploy capital. The only real negative is the concept of greenwashing – where an issuer comes to market and talks up their credentials only to fall short from an ESG perspective,” Bishay says.
Find out more about George's impact and sustainable funds:
Regnan Credit Impact Trust
Pendal Sustainable Australian Fixed Interest Fund
See omnystudio.com/listener for privacy information.
Issuance of green and social (or "impact") bonds more than doubled in 2021 but demand is still outstripping supply says George Bishay, portfolio manager with Pendal’s Income and Fixed Interest team.
Impact bonds provide a financial return as well as a positive impact on the environment or society.
“If you are able to get hold of them, they perform very well in the secondary market because everyone wants them,” Bishay says. “They outperform vanilla bonds due to this huge demand.”
“It’s a really powerful way to deploy capital. The only real negative is the concept of greenwashing – where an issuer comes to market and talks up their credentials only to fall short from an ESG perspective,” Bishay says.
Find out more about George's impact and sustainable funds:
Regnan Credit Impact Trust
Pendal Sustainable Australian Fixed Interest Fund
See omnystudio.com/listener for privacy information.
10 min