ECB slashes carbon-heavy corporate bond buying in October but no trend yet

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By Mike Turner
10 Nov 2020

The European Central Bank cut in October the share of corporate bonds it bought that have lower ESG ratings, according to analysis from ABN Amro, leading some bankers to predict less technical support to come for parts of the corporate bond market.

The number of individual bonds that the ECB bought in October that had a medium or worse environmental, social and governance (ESG) rating from Sustainalytics accounted for 13% of the central bank’s corporate purchases in October. 

This was down from 20% in September, according to ABN Amro, which cross-referenced ...

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