BlackRock Looks at Green Bond Funds While Pimco Urges Caution
- Green bond issuance globally has grown 80% this year
- Much of growth comes from China, while issuance in U.S. falls
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BlackRock Inc. and some of the world’s other major asset managers are setting up funds focused on green bonds. The trick is finding enough of the debt to buy.
BlackRock is developing green bond funds that would compete with Allianz SE and Axa SA, Europe’s largest insurers, as well as State Street Corp., which all created similar products last year. Green bonds are issued by development banks, municipalities, utilities and companies to raise money for measures and projects aimed at benefiting the environment.