imported>Doug Williamson |
imported>Doug Williamson |
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| ''Securities - borrowings - pricing - ESG.''
| | Last Twelve Months. |
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| Green curve is an abbreviation for green ''yield curve''.
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| A green curve describes the prices of green securities trading in the secondary market, differentiated by their maturities. | | A time period used in evaluating performance over time. |
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| | For example, LTM unit sales, sales revenue, profit measure or profitability ratio. |
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| The difference in yield between the green yield curve and the comparable conventional yield curve is known as the "green premium" or ''greenium''.
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| | Many smaller bodies report annual figures, only once per year. |
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| :<span style="color:#4B0082">'''''UK to build out green curve'''''</span>
| | Often for larger organisations, each time relevant figures are available for investors, it will be when the firm reports - often quarterly or half-yearly. |
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| :"It was announced at Budget 2021 that the government will issue its first sovereign green bond - or green gilt - this summer, with a further issuance to follow later in 2021 as the UK looks to build out a 'green curve'."
| | Within an organisation, commonly monthly accounts are produced, but some matters - unit sales, injury-causing accidents, for example - will be reported on more frequently. |
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| :''Green gilt issuance, UK Debt Management Office''
| | As well as use in performance evaluation, LTM figures can also be useful in detecting irregularities such as fraud, false accounting, etc. |
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| :<span style="color:#4B0082">'''''Germany to create a green curve'''''</span>
| | LTM figures are sometimes referred to as "moving annual" or "rolling annual" figures and may, for example, be expressed as "moving annual total" (abbreviated to MAT). |
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| :"Germany's green debt plan differs from peers such as France and the Netherlands in that each green bond sold will be matched with a conventional twin...
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| :The structure will show investors the exact cost of going green. Until now, gauging the green premium meant examining an issuer’s regular yield curve to gauge where a hypothetical conventional bond identical to the green bond in question might trade.
| | Also known as ''Trailing'' Twelve Months (TTM). |
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| :'For the first time, we will be able to exactly see what the (green) premium looks like without having to do any maths, except for a simple "minus" calculation, one yield minus the other,' said Christoph Rieger, head of rates and credit research at Commerzbank in Frankfurt...
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| :... accurately gauging relative issuance costs should convince more borrowers of the financial benefits of going green, said Piet Christiansen, chief strategist at Danske Bank in Copenhagen.
| | ==See also== |
| | *[[Association of Corporate Treasurers]] |
| | *[[Cost per unit]] |
| | *[[False accounting]] |
| | *[[Moving average]] |
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| :So Germany’s structuring of this issue could well be key in drawing more borrowers to the green market.
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| :'When Germany will (create) a green curve, then this is what we will price the green projects off of. So it is really that there will be a benchmark of where green pricing will be, going forward,' Danske’s Christiansen said."
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| :''Reuters - Yoruk Bahceli - 2 September 2020''
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| The size of the green premium (greenium) - and even the rationale for its existence - are subject to some debate, as discussed here by the Climate Bonds Initiative.
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| :<span style="color:#4B0082">'''''26 out of 33 green bonds priced on or inside their yield curves'''''</span>
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| :"The new issue premium is the [difference in yield] for a new bond compared to where seasoned bonds from the same issuer are trading in the secondary market at the time of issuance...
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| :There is no reason why a bond being green should impact its price, since green bonds rank pari-passu (on equal footing) with bonds of the same payment rank and issuer.
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| :[However, there] is no credit enhancement to explain pricing differences and issuers of green bonds often incur costs such as Second Party Opinions and Certification, although these are typically negligible.
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| :Green bonds and vanilla equivalents are subject to the same market dynamics..."
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| :''Green bond pricing in the primary market - July to December 2020 - Climate Bonds Initiative''
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| == See also ==
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| * [[Arbitrage]]
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| * [[Bond]]
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| * [[Credit enhancement]]
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| * [[Green bond]]
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| * [[Green gilt]]
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| * [[Greenium]]
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| * [[Maturity]]
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| * [[Pari passu]]
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| * [[Premium]]
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| * [[Secondary market]]
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| * [[Vanilla]]
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| * [[Yield curve]]
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| ==External links==
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| *[https://www.dmo.gov.uk/responsibilities/green-gilts/ Green gilt issuance - UK Debt Management Office]
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| *[https://www.climatebonds.net/resources/reports/green-bond-pricing-primary-market-h2-2020 Green bond pricing in the primary market - Climate Bonds Initiative]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:The_business_context]] | | [[Category:The_business_context]] |
| [[Category:Corporate_finance]] | | [[Category:Corporate_finance]] |
| [[Category:Investment]]
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| [[Category:Long_term_funding]]
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| [[Category:Compliance_and_audit]]
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| [[Category:Ethics]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Risk_reporting]]
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| [[Category:Financial_products_and_markets]]
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Last Twelve Months.
A time period used in evaluating performance over time.
For example, LTM unit sales, sales revenue, profit measure or profitability ratio.
Many smaller bodies report annual figures, only once per year.
Often for larger organisations, each time relevant figures are available for investors, it will be when the firm reports - often quarterly or half-yearly.
Within an organisation, commonly monthly accounts are produced, but some matters - unit sales, injury-causing accidents, for example - will be reported on more frequently.
As well as use in performance evaluation, LTM figures can also be useful in detecting irregularities such as fraud, false accounting, etc.
LTM figures are sometimes referred to as "moving annual" or "rolling annual" figures and may, for example, be expressed as "moving annual total" (abbreviated to MAT).
Also known as Trailing Twelve Months (TTM).
See also
