How Green Are Your Bonds?
Kiplinger's Personal Finance|April 2021
Fixed-income investors can make an environmental impact.
NELLIE S. HUANG
How Green Are Your Bonds?

IF YOU REALLY WANT TO MAKE AN environmental impact with your investment dollars, buy green bonds. These securities fund projects that help the environment, delivering measurable outcomes without sacrificing returns you might earn from traditional bonds. And they are growing like wildflowers. Last year, the global market for green bonds—a fixed-income sector that’s just over 10 years old—surpassed the $1 trillion mark, putting it on par with the U.S. high-yield corporate debt market, says Vishal Khanduja, manager of Calvert Green Bond. This year, the green bond market could top $2 trillion.

Who’s issuing these bonds? Corporations, municipalities and even governments. Bank of America has issued five green bonds since 2013 totaling $6.6 billion. The bonds finance sustainable projects, such as North Star Solar, a Minnesota solar facility built in 2016 that generated enough power for 20,000 homes in its first operational year. France has issued green bonds for clean-energy projects and carbon-free public transportation; Germany issued green government bonds last year. Massachusetts, California and New York are big players. And Fannie Mae is a major issuer. The mortgage agency bundles the loans it makes to retrofit multifamily properties to be more energy-efficient.

Report cards count. In the green bond world, impact reporting is key. Investors want to know precisely how their dollars are improving the environment, says William Sokol, director of exchange-traded fund product management at VanEck. “It’s about how those dollars are being used.”

Diese Geschichte stammt aus der April 2021-Ausgabe von Kiplinger's Personal Finance.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der April 2021-Ausgabe von Kiplinger's Personal Finance.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS KIPLINGER'S PERSONAL FINANCEAlle anzeigen
FREE HELP FOR COLLEGEBOUND STUDENTS
Kiplinger's Personal Finance

FREE HELP FOR COLLEGEBOUND STUDENTS

This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.

time-read
2 Minuten  |
December 2024
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
Kiplinger's Personal Finance

WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS

You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.

time-read
2 Minuten  |
December 2024
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
Kiplinger's Personal Finance

SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS

ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.

time-read
5 Minuten  |
December 2024
Strategies for Novice Investors
Kiplinger's Personal Finance

Strategies for Novice Investors

AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.

time-read
3 Minuten  |
December 2024
ANSWERS TO YOUR 529 PLAN QUESTIONS
Kiplinger's Personal Finance

ANSWERS TO YOUR 529 PLAN QUESTIONS

Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.

time-read
6 Minuten  |
December 2024
Rate-Cut Winners and Losers
Kiplinger's Personal Finance

Rate-Cut Winners and Losers

NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.

time-read
2 Minuten  |
December 2024
SHOULD YOU BUY THESE RED-HOT FUNDS?
Kiplinger's Personal Finance

SHOULD YOU BUY THESE RED-HOT FUNDS?

Covered-call ETFs are popular but come with plenty of caveats.

time-read
6 Minuten  |
December 2024
DIVIDEND STOCKS ARE READY TO REBOUND
Kiplinger's Personal Finance

DIVIDEND STOCKS ARE READY TO REBOUND

Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.

time-read
10+ Minuten  |
December 2024
IS A 55+ COMMUNITY RIGHT FOR YOU?
Kiplinger's Personal Finance

IS A 55+ COMMUNITY RIGHT FOR YOU?

These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.

time-read
8 Minuten  |
December 2024
AT LONG LAST, RATES ARE DROPPING
Kiplinger's Personal Finance

AT LONG LAST, RATES ARE DROPPING

Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.

time-read
4 Minuten  |
December 2024