Caleb Mutua

The global sustainable bond market clocked its slowest month of the year in November as borrowers dialed back issuance, anticipating volatility because of the US elections.

To fund buybacks of some of its current debt, CVS is expected to issue hybrid securities in the range of $2 billion to $2.5 billion.

High-grade US corporate bond spreads hover near their tightest levels in more than 25 years and may grind even lower next year. Charles Schwab Corp.’s Kathy Jones sees cause for concern.

(Bloomberg) -- High-grade US corporate bond spreads hover near their tightest levels in more than 25 years and may grind even lower next year.

Issuance of bonds meant to benefit the environment will likely remain muted in the US because companies are no longer getting a material price advantage for selling such debt, according to T. Rowe Price Group Inc.’s Matt Lawton.

According to a T. Rowe Price portfolio manager, the spread between green bonds and non-green bonds from the same corporate is in the range of 0 bps to 1 bps, which isn't “economically appealing for an issuer.” Sovereigns are getting about a 7 bps premium, on average.

The "greenium" spread is not economically feasible for bond issuers anymore, T. Rowe Price's Matt Lawton said.

Sustainability chiefs on Wall Street expect borrowers to continue to tap the booming global debt market to fund their sustainability goals, even during Donald Trump’s less ESG-friendly administration.

When CVS Health Corp. sold $3 billion of bonds in early December, it relied on an unusual kind of debt that saw record issuance this year and could set a new high in 2025.

In This Article CVS (Bloomberg) -- When CVS Health Corp. sold $3 billion of bonds in early December, it relied on an unusual