Green, Sustainable Bonds On The Rise, But Earn No Premium Over Vanilla Bonds

There is no doubt that there has been a rise in green and sustainability-linked bonds since 2012.

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Green bond sales in 2019 are beating 2018’s record.

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Despite the enthusiasm for green bonds, their returns are in line with the broader market.

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Not surprisingly, Europe is a leader in the green/sustainable bond arena. French green bonds are in line with plain vanilla French government bonds.

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The same holds true in Holland, except that Dutch green bonds generate slightly higher yields than plain vanilla Dutch government bonds.

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There is now a dearth of green projects to finance, but there will likely changed over time.

On the equity side, Credit Suisse has a green/sustainable real estate fund.

csgreen

With the popularity of green bonds and real estate funds, is it time to finance Soylent Green?

 

 

 

 

 

 

 

 

 

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