COVID-19 pandemic: investors focus on dual returns
Inclusion of global multilateral development bank (MDB) and green bonds in a diversified portfolio may provide protection against declines in risky assets.
MDB bonds have recently outperformed traditional high grade bond indexes, and the same is true for green bonds compared with broad investment-grade corporate bond indexes.
With investments in MDB bonds, investors can also contribute to economic recoveries, as in many countries multilateral development banks are lenders of first and last resort. During this global pandemic, urgent financial support is particularly crucial for developing and least-developed countries so that they are equipped to respond to the spread of the coronavirus and can take measure to protect lives and economies.