This report examines the investment case for Multilateral Development Bank (MDB) bonds against a backdrop of easing US Treasury yields and increased global focus on climate adaptation finance. UBS views MDB bonds as an attractive, high-quality fixed income alternative to cash.
Key Takeaways
- 1.Multilateral development bank (MDB) bonds offer an appealing risk-return profile and are a compelling investment, particularly for sustainable infrastructure.
- 2.US Treasury yields are anticipated to moderate in the second half of 2026, with the 2- to 5-year segment offering the best risk-reward profile.
Table of Contents
- Central scenario
- Global Asset Class Preference Attractive
- Upside scenario
- Downside scenario
- Global asset class preferences definitions
- Appendix
- Risk information
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Authors
Thomas WackerFrederick MellorsCarolina Corvalan
Themes
Climate Adaptation FinanceFiscal Risk
Regions
EuropeAsia PacificUnited StatesIranChina