Investors willing to pay a little more for green bonds
Green investors often boast that they can support sustainability without sacrificing returns. But new research from Texas McCombs suggests otherwise. It also offers governments opportunities to raise more money from those investors for sustainable projects.
In Germany’s sovereign bond market, buyers are quietly paying a premium for green bonds — by accepting lower yields on them. So finds Aaron Pancost, assistant professor of finance, who calls the difference a “greenium.”
Pancost’s central ...