Sustainable bonds are a “defensive opportunity” that credit investors should favor over non-green, investment-grade corporate notes, said UBS Global Wealth’s head of credit, Thomas Wacker.
Most industries that have been overwhelmed by the impact of the coronavirus and a slump in crude oil prices -- including oil and gas, basic materials, consumer discretionary and autos -- are “pretty much nonexistent” in the green bond market, Wacker said in a telephone interview Friday. Instead, sustainable debt issuance has been highly concentrated among more conservative sectors like utilities, banks and to a lesser degree, cyclical industrial names.
