The six biggest Wall Street banks are expected to slash their corporate bond issuance in 2023 for a second year in a row, offering a bright spot for investors nursing record losses from the debt last year.

Global bonds rebounded in November, adding a record $2.8 trillion in market value, as investors bet that central banks are getting a grip on inflation. But how long the party lasts is another matter.

Banks could be about to deluge the market with more bonds after they post quarterly results, borrowing at a breakneck pace even as other blue-chip companies pull back, and bondholders could suffer in the process.

Tesla Inc., whose status as a stock-market darling has turned it into the world’s most valuable car company, may soon win over some of Wall Street’s slowest moving skeptics: Bond-rating analysts.

Governments that had propped up Covid-ravaged economies by issuing social bonds are now turning their attention to longer-term climate goals, while companies are keen for increased flexibility when spending proceeds from sales of environmental, social and governance (ESG) debt. That’s crimping the flow of social notes that typically fund specific projects such as job creation or affordable housing.

For all the money that companies and governments are raising in the green-bond market to fund environmental projects globally, there’s still a long way to go to adequately fund the fight against climate change, according to the Climate Bonds Initiative.

Demand is so strong for green bonds, or debt that funds environmentally friendly projects, that investors are accepting lower yields for securities that are harder to trade, according to Barclays Plc.

Global issuance of bonds for environmental, social and governance goals look set to hit $1 trillion for the first time ever this year. That’s more than double what was sold in all of 2020 as more borrowers are pushed to sell ethical debt by investors.

U.S. President Joe Biden’s pension bailout might do more than just support troubled retirement plans. It could also spur tens of billions of dollars in demand for corporate bonds with the lowest investment-grade ratings, according to Citigroup Inc.

The Bloomberg Barclays U.S. Green Bond Index is down 2.5% so far this year -- far less than the 5.1% drop seen in the investment-grade, corporate debt benchmark.

The latest crash in oil prices is threatening to push $140 billion of investment-grade energy debt over the edge into junk.