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Labeled-Bond Issuance and Cost of Debt
Jul 7, 2023
Given the rapid growth and increased presence of corporate issuers in the labeled-bond market, we outline the main reasons issuers may choose to issue these instruments. We discuss why labeled-bond issuance could increase an issuer’s attractiveness in the eyes of capital providers and we look at whether labeled-bond issuers could have realized such benefits in the form of lowered cost of debt.
Cost-of-debt comparison across regions and market classifications
Data as of May 31, 2023. “Labeled bond issuers” refers to corporate bond issuers within the MSCI ESG Ratings coverage with outstanding labeled bonds aligned with selection criteria (n=476). “Other issuers” refers to corporate bond issuers within our coverage without such bonds (n=3,420). Numbers in bars show number of observations in each category with available control variable data. DM = developed markets and EM = emerging markets; classification follows the MSCI Market Classification Framework. Source: MSCI ESG Researc
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Research authors
- Jakub Malich, Vice President, MSCI Research
- Anett Husi, Analyst, MSCI Research
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