The business of underwriting sustainable environmental initiatives is sizable. Globally, green bond issuance in 2019 exceeded $250 billion. But these evolving, innovative securities are sophisticated, and as specialization increases, consistent methods of evaluating issues and issuers are crucial to integrating these assets into investment portfolios. This authoritative essay by fund managers Afsaneh Beschloss and Mina Mashayekhi sounds an important caution: While investors welcome the growth and variety of such instruments, they should temper their enthusiasm with some rigorous homework.
About the Authors
Afsaneh Beschloss is the founder and CEO of Rock Creek, an asset management firm, where Mina Mashayekhi is a senior adviser.