The UK's decision to leave the European Union has far-reaching credit consequences across all sectors and regions
In addition to the credit drivers considered in our bank rating methodology, global systemically important banks with significant capital markets activities (the global investment banks, or “GIBs”) have several business-model characteristics that can pose unique or pronounced risks to their creditors. These include: (1) exposure to significant earnings volatility and tail risks, (2) the need for reliable and robust non-capital-markets earnings and capital cushions to protect against unexpected losses, (3) greater absolute and relative reliance on wholesale funding, and (4) a confidence-sensitive customer base. In addition, regulatory investigations and litigation relating to legacy issues present ongoing, material risks to some of these firms.
Since their introduction in 2007, green bonds have gained attention for their potential role in mobilizing capital toward environmental solutions. Capital market financing needs--in combination with growing investor demand, standardization of offerings, and the issuance of benchmark-sized deals that are effectively priced, both investment grade and potentially speculative or non-investment grade--are expected to lift green bond issuance in the years to come. This topic page aggregates Moody’s green bonds oriented research, covering trends and developments, relevant company specific research and green bond assessments as well as related environmental topics more broadly.