Mackenzie says green bond buyers could get carbon offset reward

Mackenzie Investments has said that the higher prices on green bonds could be reduced if the ethics of the purchases were considered.

Photo: Joachim Adrian

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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