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Reuters
Analysis-‘Greenium’ shrinks as climate bond sales swell to record
Investors have long paid a premium to get hold of scarce green bonds, but record issuance might be about to change that. Comparing option-adjusted credit spreads on an index of euro green bonds with a comparable index of conventional bonds, the Association for Financial Markets in Europe, an industry body, found investors in April paid virtually no premium for holding green corporate bonds. Estimates vary, depending on methodology, as most green bonds don’t have a directly comparable conventional peer.