Nordea: Do green bonds outperform in ‘risk-off’ periods? Yes, but beware the nuances (May 2020)

We find that green bonds have been more resilient than traditional bonds in times of crisis, but there are things to keep in mind when doing the analysis.

04 May, 2020

Financial crises and economic downturns provide an opportunity to analyze the behavior of investors and financial instruments to understand which assets are resilient and which are not. With the current crisis in mind, we ask: How have green bonds fared now and in previous times with elevated risk aversion, so-called “risk-off” periods? Have green bonds outperformed the traditional bond market?

After a comparative analysis, we find that green bonds have fared better than traditional bonds in the current crisis as well as past major risk-off periods, but there are nuances to keep in mind when making the assessment.

Read the entire analysis here.

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Sources: All texts, content, quotes and graphics by Nordea. All credits and rights to Nordea.

Posted in Ansvarlige investeringer.