ESG and long-term themes
The Bank of England’s plan for greener bond buying
As COP26 took place in November, the Bank of England fleshed out how its corporate bond purchases will reward companies taking action to make the economy greener. We think the BoE has taken a balanced approach to incentivising company behaviour, utilising a mixture of carrots and sticks, allowing a gradual phase-in of rules, and aligning with other areas of policy. Despite the small size of the programme overall, investors should still keep an eye out for how this might impact credit spreads in the sterling corporate bond market.;
