Such threats are real as the default rates of subinvestment grade borrowers could increase. Credit derivatives, which have proliferated in recent years and whose pricing has depended on relatively untested models and default correlation assumptions, may in particular be vulnerable to corrections.
The number of companies across the world who issue some form of sustainability report continues to increase. Sustainability reports are now issued by 94% of the world’s 250 largest companies. And this month the issuance of green bonds burst through the $ mark worldwide. Not only is there a rising volume, the demand still exceeds the supply.