​​Labeled Bonds: Quarterly Market Overview Q3 2023​

In our quarterly series dedicated to labeled bonds, we break down the latest issuance trends and the overall market by multiple bond and issuer characteristics to identify key developments in this rapidly growing and increasingly diverse market.

We also examine labeled bonds’ recent performance versus the wider bond market. The sampled labeled bonds moved largely in line with the market in the first nine months of 2023, with somewhat amplified differences in performance during market down- and upturns.

Cumulative return and monthly return difference (labeled bonds vs. wider bond market)

“Wider bond market” refers to bonds that were constituents of MSCI Government, Provincial and Municipal and Corporate Bond Indexes during the study period (n=13,278). “Labeled bonds (sample)” refers to labeled bonds included in these MSCI bond indexes during the study period (n= 864). Performance attribution was conducted using the MSCI Fixed Income Factor Model in MSCI’s BarraOne® risk- and portfolio-management analytics platform. Past performance does not indicate future returns. Data as of Sept. 29, 2023. Source: MSCI ESG Research