The share of green and sustainable bonds rose from 2% of all bonds globally in 2018 to 12% at the end of 2021, but investors have become less willing to pay the premium. They have wised up to bogus environmental claims, or so-called greenwashing. But the outflows from ESG bond funds in 2022 have been much lower than outflows from other bond funds.

It has become more difficult for European companies to raise money in the bond market. Bond transactions are being withdrawn. Fund managers are demanding much higher returns, but companies are balking at this higher price tag. The Bank of England wants to sell down its corporate bond portfolio and the ECB asset purchase programme is finishing.