Spread gap between green and grey bonds closing – BIS specialist
Measuring and incorporating sustainability still a challenge, says Omar Zulaica
The opportunity cost of “going green” has decreased, as the spread gap between green and grey bond portfolios is closing, says Omar Zulaica, senior asset management specialist with the Bank for International Settlements (BIS).
The reduced return gap is a sign of the development of green finance, Zulaica told Central Banking’s National Asset-Liability Management (Nalm) Asia virtual event on September 18.
To plot the change, Zulaica said the team built a “grey” portfolio of conventional bonds
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