Dublin, Ireland – Corvid is today announcing the launch of its Green Bond valuations service. The service is focused on the illiquid, bespoke end of this growing sector.
As a sector that often stands between corporate and public sector markets, Green Bond issuance has seen substantial growth in the last two years. With a target issuance of over US$ 1 trillion by 2020, the rapid growth is expected to continue. By providing independent valuations, Corvid aims to bring new liquidity to this increasing important sector.
While growth has been impressive, liquidity remains low in much of the sector. Government issued bonds show good liquidity but the more bespoke, project focused end of the market remains illiquid. The wide range of transaction structures and credit quality means that liquidity is unlikely to improve in the near term.
Demand for Valuations
Corvid Partners specializes in evaluating and pricing illiquid fixed income securities. In early 2018, several clients approached the firm looking for pricing models that would provide accurate valuations in Green Bonds. We began to develop our pricing tools and have spent several months in testing. This had to include several different elements. Our approach had to take into account the corporate and the public sector nature of each deal. We also had to evaluate the appetite for risk in what is still a developing market sector.
Speaking from Dublin, Darragh Mooney said: “The growing demand for Green Bonds from a wider range of institutional investors has created a demand for valuation services that take into account the structural diversity of many of these issues“. He continues “We were approached by clients who were looking at the sector and following an extended period of testing we are delighted to launch this new green bond valuations service.”
Corvid Partners provides independent valuations on illiquid fixed income securities to the capital markets industry. We value over 14,000 illiquid securities in 21 currencies from 65 different countries each week. Corvid is now the largest on-demand provider of illiquid debt valuations to Bloomberg. We also work with a wide range of institutions, valuing fixed income assets for risk and capital reporting.
For more information about Corvid’s services visit corvidpartners.com or contact us in Europe on +353 1 254 4733 or in North America on +1 860 577 2238