One $95 billion asset manager is bracing for bond yields to gyrate and for high borrowing costs to weigh on corporate earnings.

With governments and development banks dominating sales, the global market for green, social, sustainability, and sustainability-linked bonds reached $150 billion last year.

"We could easily see $200 billion of sales this month."

Meanwhile, green bonds, whose proceeds can be used only for specific projects, had their second-busiest year ever.

Issuers rushed to borrow to fund sustainability-linked initiatives ahead of the usual December slowdown.

"Once we get through this wave, there's not going to be much remaining supply for the rest of the year."

The firm is taking advantage of robust demand for long-dated bonds as the issuance spree roars on.

According to a Bank of America analysis, U.S. blue-chip debt will be "an attractive asset class" if interest rates continue to rise, and "the markets are open."