At Any Rate Emerging Markets: The EM Fixed Income Sustainable Debt Asset Class
Mar 24, 2025
Virginia Martin Heriz, Global Head of ESG Methodology and Integration at JPMorgan Research, and Lydia Harvey, Head of ESG Index Strategy and Integration, share insights on the booming EM fixed income sustainable debt asset class, now worth $1.4 trillion. They discuss the surge in green bonds, corporate issuances, and 'Greenium' in this sector. The duo dives into the importance of water security and biodiversity in sustainable debt, as well as innovative financial mechanisms like debt for nature swaps that are paving the way for a greener future.
AI Snips
Chapters
Transcript
Episode notes
EM Sustainable Debt Growth
- The EM sustainable debt universe has grown to $1.4 trillion.
- This represents 14% of EM hard currency bonds and 3% of EM local currency debt.
EM Sustainable Debt Composition
- Green bonds comprise 59% of the EM sustainable debt market.
- Private sector companies are the biggest issuers (57%), followed by government-related entities (25%).
EM Corporate Sustainable Bonds Growth
- EM corporate sustainable bond market grew by over $40 billion to $360 billion.
- This growth is fueled by strong issuance trends, diversifying issuer base, and increasing investor interest.