imported>Doug Williamson |
imported>Doug Williamson |
Line 1: |
Line 1: |
| ''Securities - borrowings - pricing - ESG.''
| | A law which sets the maximum period which a person can wait before filing a claim, depending on the type of case or claim. |
| | |
| A green curve describes the prices of green securities trading in the secondary market, differentiated by their maturities. | |
| | |
| Green curve is an abbreviation for green ''yield curve''.
| |
| | |
| | |
| The difference in yield between the green yield curve and the comparable conventional yield curve is known as the "green premium" or ''greenium''.
| |
| | |
| | |
| :<span style="color:#4B0082">'''''UK to build out green curve'''''</span>
| |
| | |
| :"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'."
| |
| | |
| :''Green gilt issuance, UK Debt Management Office''
| |
| | |
| | |
| :<span style="color:#4B0082">'''''Germany to create a green curve'''''</span>
| |
| | |
| :"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...
| |
| | |
| :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.
| |
| | |
| :'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...
| |
| | |
| :... 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.
| |
| | |
| :So Germany’s structuring of this issue could well be key in drawing more borrowers to the green market.
| |
| | |
| :'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."
| |
| | |
| :''Reuters - Yoruk Bahceli - 2 September 2020''
| |
| | |
| | |
| 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.
| |
| | |
| | |
| :<span style="color:#4B0082">'''''26 out of 33 green bonds priced on or inside their yield curves'''''</span>
| |
| | |
| :"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...
| |
| | |
| :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.
| |
| | |
| :[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.
| |
| | |
| :Green bonds and vanilla equivalents are subject to the same market dynamics..."
| |
| | |
| :''Green bond pricing in the primary market - July to December 2020 - Climate Bonds Initiative''
| |
| | |
|
| |
|
|
| |
|
| == See also == | | == See also == |
| * [[Arbitrage]] | | * [[Statute]] |
| * [[Bond]]
| |
| * [[Credit enhancement]]
| |
| * [[Green bond]]
| |
| * [[Green gilt]]
| |
| * [[Greenium]]
| |
| * [[Maturity]]
| |
| * [[Premium]]
| |
| * [[Secondary market]]
| |
| * [[Yield curve]]
| |
| | |
| | |
| ==External links==
| |
| *[https://www.dmo.gov.uk/responsibilities/green-gilts/ Green gilt issuance - UK Debt Management Office]
| |
| *[https://www.climatebonds.net/resources/reports/green-bond-pricing-primary-market-h2-2020 Green bond pricing in the primary market - Climate Bonds Initiative]
| |
|
| |
|
| [[Category:Accounting,_tax_and_regulation]]
| |
| [[Category:The_business_context]]
| |
| [[Category:Corporate_finance]]
| |
| [[Category:Investment]]
| |
| [[Category:Long_term_funding]]
| |
| [[Category:Compliance_and_audit]] | | [[Category:Compliance_and_audit]] |
| [[Category:Ethics]]
| |
| [[Category:Identify_and_assess_risks]]
| |
| [[Category:Manage_risks]]
| |
| [[Category:Risk_frameworks]]
| |
| [[Category:Risk_reporting]]
| |
| [[Category:Financial_products_and_markets]]
| |