Green commitments are imperfect public signals that can increase the value of private information about firms’ transition capacity. Using U.S. corporate bond data covering 2013 to 2025, I find that bond repricing following green commitments is largely hidden in average credit spreads across outstanding bonds. Instead, the long-short spread differential widens after commitment and contains incremental predictive information about subsequent emissions improvements. Offering-spread changes on newly issued bonds are also more positive at longer maturities. I also provide trading-based evidence that customer order flow is followed by a larger yield response for longer relative to shorter maturities. The findings are consistent with investors trading on transition-related information after green commitments.
