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Event Overview
The seminar titled 'Do Green Bonds Trade Differently?' is part of the Decarbonization Seminar series organized by the ZEW - Leibniz Centre for European Economic Research. This event will delve into the trading dynamics of green bonds, which have emerged as pivotal instruments in climate finance.
Key Insights
Research presented will utilize intraday RFQ data from Europe's largest corporate bond trading platform, covering the period from 2017 to 2022. Findings indicate that green bonds tend to trade more rapidly, in larger sizes, and at tighter spreads compared to conventional bonds from the same issuers. However, they also face higher trading frictions on the buy-side, reflecting a strong demand that meets limited supply.
During the COVID-19 pandemic, green bonds exhibited smaller increases in price volatility and spreads, suggesting resilience in turbulent market conditions. Additionally, conventional bonds from green issuers showed improved trading conditions, indicating potential spillover effects from green issuance. The seminar will also address how green bonds respond to environmental controversies and credit rating changes, highlighting the unique clientele that prioritizes environmental integrity alongside traditional credit metrics.
This hybrid event will take place at the University of Mannheim, providing an opportunity for both in-person and virtual participation. For more details and registration, visit the event website.
