The dilemma of buying green bonds at higher prices than conventional securities with comparable credit quality could be eased if the ethical notes were deemed a tool for investors to deliver on their own net-zero greenhouse gas emission pledges, according to fund managers at Mackenzie Investments.
“Right now it’s the same creditor, the same issuer, there is zero benefit for holding a security, which is yielding less, unless you want to do something good,” said Konstantin Boehmer, a fixed-income portfolio manager at Toronto-based Mackenzie, which oversees C$195.7 billion ( USD 151.3bn) of assets. “But there’s no financial benefit for the client.”
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