Green bond and Yield: Difference between pages

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A green bond is not a particularly tightly defined term, but is generally thought of as a fixed income instrument launched to fund specific environmental or green projects such as projects to reduce CO2 emissions.
1.


The amounts issued have grown rapidly, according to information collated by the Climate Bonds Initiative, a non profit organisation established in 2010. However, total amounts issued remain a relatively small proportion of total bond issuance.
Dividend yield.


Guidelines for green bonds, the Green Bond Principles, have been issued by a group of 25 leading banks, coordinated by the ICMA ([[International Capital Market Association]]), to establish a voluntary framework for these instruments.


2.


Green bonds are also sometimes known as 'ESG' (Environmental, Social and Governance) bonds.
The rate of return ''on the current market value'' of an asset or liability, usually expressed as a percentage per annum.
 
For example, today’s yield to maturity of a bond measures the total return to an investor in the bond, reflecting both the interest income over the life of the bond and any capital gain (or loss) from today’s market value to the redemption amount payable at maturity.
 
When the market yield to maturity is applied to discount the future cashflows of the asset or liability, the net present value of all of the cashflows - including the current market purchase price - is Nil.




== See also ==
== See also ==
* [[ESG investment]]
* [[Credit spread ]]
* [[Fixed income]]
* [[Discount instruments]]
* [[Retail bond]]
* [[Discount rate]]
* [[Sustainability bond]]
* [[Discount yield]]
* [[Greenwash]]
* [[Dividend yield]]
* [[IPCC]]
* [[Interest]]
* [[Interest rate]]
* [[Sterling commercial paper]]




===Other links===
==Other links==
[http://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/green-bonds/governance-framework/ Green Bond Principles]
[http://www.treasurers.org/node/8837 Triumph with timelines, The Treasurer, March 2013]


[http://www.ft.com/cms/s/0/42ad7b66-e64e-11e3-bbf5-00144feabdc0.html#axzz330jqfNJo Green bond credentials under scrutiny]
* [[Yield spread]]
* [[Yield to maturity]]

Revision as of 14:30, 2 October 2013

1.

Dividend yield.


2.

The rate of return on the current market value of an asset or liability, usually expressed as a percentage per annum.

For example, today’s yield to maturity of a bond measures the total return to an investor in the bond, reflecting both the interest income over the life of the bond and any capital gain (or loss) from today’s market value to the redemption amount payable at maturity.

When the market yield to maturity is applied to discount the future cashflows of the asset or liability, the net present value of all of the cashflows - including the current market purchase price - is Nil.


See also


Other links

Triumph with timelines, The Treasurer, March 2013