European ESG debt issuance down 23.9% in Q2

The latest quarterly report from the Association for Financial Markets in Europe (Afme) highlighted diverging trends in the European Environment, Social, and Governance (ESG) finance landscape during the second quarter of 2023.

European ESG bond and loan issuance dropped by 23.9 percent year-on-year to 151 billion euro in the second quarter. The quarter also saw an 11.1 percent decrease compared to the first quarter. 

Synchronised housing market downturn triggers nerve pains

As real estate markets worldwide move in tandem by showing clear signs of a downturn, two major international financial bodies this week have reiterated their concerns over the housing market’s potential impact on financial stability. Both the European Central Bank and the International Monetary Fund have raised a red flag. Investment Officer looks for answers to some key questions a moment that mortgage rates are at their highest since 2006.

High-yield corporates at a virtual standstill

Rising interest rates and continuing tension surrounding the Ukraine conflict have brought the issuance of high-yield corporate bonds in Europe to a virtual standstill. “The size and speed of the current interest rate increase is causing companies to stop going public and the market to virtually dry up,” said one specialist.

European ESG debt issuance almost doubled in 2021

Issuance of ESG debt in Europe almost doubled last year as more sovereign and supranational issuers entered the market and governments adopted sustainable finance programmes. The Association for Financial Markets in Europe sees more growth this year due to greater participation by the corporate sector and the potential of the ESG securitisation market.