ESG & Investing
A Growing ESG Market Is Led by US Government Agencies
- Social bond sales surge to $657 billion, outpacing green debt
- US agency issuers may face growing pressure from green retreat
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A $1.8 trillion corner of the sustainable debt market is defying the wider downturn, as investors snap up bonds largely backed by US government agencies even as Donald Trump leads a green retreat.
Sales of so-called social bonds, which direct proceeds to areas like health, housing and education, jumped about 130% to $657 billion globally last year, and continued at a similar pace in the first quarter, according to data compiled by Bloomberg Intelligence. Issuance now rivals the traditionally larger market for green bonds, the data show.