At Asset TV’s latest Sustainable Fixed Income Masterclass, David Katimbo-Mugwanya, EdenTree’s Head of Fixed Income, explored why this asset class is gaining momentum:
- Returns and impact: Sustainable fixed income can provide competitive returns and measurable impact, with options ranging from sovereign to corporate issuers across the duration spectrum.
- Investor flows: There has been €8.6B net inflows into European sustainable fixed income versus significant equity outflows, with capital preservation and transition funding driving investor appetite.
- Engagement: Active issuer engagement, such as EdenTree’s recent engagement with UK building societies, is critical to driving real-world impact.
- Regulation and SDR: The transparency provided by the UK’s SDR and EU taxonomy frameworks is reshaping the market, helping identify true sustainability leaders.
- 2026 outlook: Expect continued innovation in sustainable fixed income, with more options, stronger reporting standards and growing impact opportunities.
For professional investors only. Capital at risk.
