While investors have been aware of the merits of investing responsibly for a long time, the Covid-19 crisis is likely to increase the focus on ESG principles, which should play a critical role in the emergence from the crisis. In this context, green bond financing has recently spilled over to convertible bonds, with 2020 seeing a record level of new issuance for the asset class.
Convertible bonds – which are corporate bonds that can be converted by the holder into the common stock of the issuing company – have proved resilient during the Covid-19 crisis. Such resilience, along with a record level of new issuance – above $100bn YTD – has sparked renewed interest in the asset class.
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