Green Bonds should outperform the conventional bonds market

Rui Li  |  AXA Investment Managers  |  02 December 2024

Green bonds have outperformed conventional bonds for five of the last seven years and the market has surged from $30bn to $1.9tn in the past decade, surpassing conventional bonds’ growth. Diversified and with a balanced sector allocation, green bonds should offer higher yields and spread levels and their potential for positive outcomes during central banks cutting cycles make them a compelling investment. In addition, because green bond issuers are potentially well-positioned to capitalise on a transitioning economy, they can be expected to deliver competitive returns ov...

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