Looking to Bonds for Volatility Protection? Going Green May

Looking to Bonds for Volatility Protection? Going Green May Be Golden


Looking to Bonds for Volatility Protection? Going Green May Be Golden
June 11, 2021
When things get raucous in equity markets, investors often turn to bonds and gold to take some of the edge off.
Investors looking to simply embrace one of those asset classes as a buffer against volatility may want to consider green bonds, which are accessible in exchange traded fund form via the
Green debt is offered by both corporate and sovereign issuers and is a small but growing segment of the broader fixed income market. It’s also young relative to other bond segments, with the first green bonds issued in 2007. Youth aside, research conducted by Imran Yousaf of Pakistan’s Air University, Muhammed Tahir Suleman of the University of Otago in New Zealand, and Riza Demirer of Southern Illinois University Edwardsville, indicates green bonds held up remarkably well during the coronavirus market swoon of 2020.

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