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T. Rowe Slams Goal-Linked ESG Bonds Doing Little Good

  • Money manager cites deals from Tesco, Level 3, Nobian Finance
  • Lawton eyes goal-linked debt with ‘healthy’ dose of skepticism
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On paper, it looks like a perfect deal for green-minded investors. They buy the bonds of companies that agree to slash their environmental footprints -- and pocket higher yields if the businesses are penalized for falling short of the goals.

To Matt Lawton, T. Rowe Price Group Inc.’s portfolio manager for global impact credit strategy, however, it often looks like little more than a ruse.