Moody’s slashes green bond forecast but covered a bright spot (Sustainabonds)

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The green bond market could grow by as little as 13% this year, according to Moody’s, which has slashed its forecast after having previously anticipated a 60% rise in issuance. The rating agency nevertheless noted increases in sustainable and social bond issuance, and highlighted covered bonds’ potential.

In a report on Wednesday, Moody’s noted that green bond issuance – based on Climate Bonds Initiative figures and classification – rebounded in the second quarter of 2018 to $44.9bn (EUR38.6bn), the second highest issuance in the decade-long history of the market and 20% up on the second quarter of 2017.

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