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Green Bonds
Green bonds (also known as climate bonds) are fixed-income financial instruments ( bonds) which are used to fund projects that have positive environmental and/or climate benefits. They follow the Green Bond Principles stated by the International Capital Market Association (ICMA), and the proceeds from the issuance of which are to be used for the pre-specified types of project They differ from Sustainability Bonds in that the latter also needs to have a positive social outcome, besides simply having a positive impact on the environment. History Climate bonds are a relatively new asset class, but they are growing rapidly.Yves Hulmann"2016, l'année de l'essor des obligations vertes", ''Le temps'', 20 December 2016 (page visited on 20 December 2016). The total volume of climate bonds was estimated at 160 billions of dollars on 2016; of which 70 billions were issued in 2016. The labelled volume of bonds issued in 2019 was US$255 billion. Climate and green bonds have now been issu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bond (finance)
In finance, a bond is a type of security under which the issuer ( debtor) owes the holder ( creditor) a debt, and is obliged – depending on the terms – to repay the principal (i.e. amount borrowed) of the bond at the maturity date as well as interest (called the coupon) over a specified amount of time. The interest is usually payable at fixed intervals: semiannual, annual, and less often at other periods. Thus, a bond is a form of loan or IOU. Bonds provide the borrower with external funds to finance long-term investments or, in the case of government bonds, to finance current expenditure. Bonds and stocks are both securities, but the major difference between the two is that (capital) stockholders have an equity stake in a company (i.e. they are owners), whereas bondholders have a creditor stake in a company (i.e. they are lenders). As creditors, bondholders have priority over stockholders. This means they will be repaid in advance of stockholders, but will rank behind s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Asset-backed Security
An asset-backed security (ABS) is a security whose income payments, and hence value, are derived from and collateralized (or "backed") by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets which are unable to be sold individually. Pooling the assets into financial instruments allows them to be sold to general investors, a process called securitization, and allows the risk of investing in the underlying assets to be diversified because each security will represent a fraction of the total value of the diverse pool of underlying assets. The pools of underlying assets can include common payments from credit cards, auto loans, and mortgage loans, to esoteric cash flows from aircraft leases, royalty payments, or movie revenues. Often a separate institution, called a special purpose vehicle, is created to handle the securitization of asset backed securities. The special purpose vehicle, which creates and sells the securities, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Green Growth
Green growth is a term to describe a hypothetical path of economic growth that is environmentally sustainable. It is based on the understanding that as long as economic growth remains a predominant goal, a decoupling of economic growth from resource use and adverse environmental impacts is required. As such, green growth is closely related to the concepts of green economy and low-carbon or sustainable development. A main driver for green growth is the transition towards sustainable energy systems. Advocates of green growth policies argue that well-implemented green policies can create opportunities for employment in sectors such as renewable energy, green agriculture, or sustainable forestry. Several countries and international organizations, such as the Organisation for Economic Co-operation and Development (OECD), World Bank, and United Nations, have developed strategies on green growth; others, such as the Global Green Growth Institute (GGGI), are specifically dedicated ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Intended Nationally Determined Contributions
A nationally determined contribution (NDC) or intended nationally determined contribution (INDC) is a non-binding national plan highlighting climate change mitigation, including climate-related targets for greenhouse gas emission reductions. These plans also include policies and measures governments aim to implement in response to climate change and as a contribution to achieve the global targets set out in the Paris Agreement. NDCs are the first greenhouse gas targets under the UNFCCC that apply equally to both developed and developing countries. Process The establishment of NDCs combine the top-down system of a traditional international agreement with bottom-up system-in elements through which countries put forward their own goals and policies in the context of their own national circumstances, capabilities, and priorities, with the goal of reducing global greenhouse gas emissions enough limit anthropogenic temperature rise to well below 2 °C (3.6 °F) above pre-in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sustainable Development Goals
The Sustainable Development Goals (SDGs) or Global Goals are a collection of 17 interlinked objectives designed to serve as a "shared blueprint for peace and prosperity for people and the planet, now and into the future".United Nations (2017) Resolution adopted by the General Assembly on 6 July 2017, :File:A RES 71 313 E.pdf, Work of the Statistical Commission pertaining to the 2030 Agenda for Sustainable DevelopmentA/RES/71/313) The goals are: Sustainable Development Goal 1, No poverty, Sustainable Development Goal 2, zero hunger, Sustainable Development Goal 3, good health and well-being, Sustainable Development Goal 4, quality education, Sustainable Development Goal 5, gender equality, Sustainable Development Goal 6, clean water and sanitation, Sustainable Development Goal 7, affordable and clean energy, Sustainable Development Goal 8, decent work and economic growth, Sustainable Development Goal 9, industry, innovation and infrastructure, Sustainable Development Goal 10, Redu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bond Market
The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is usually in the form of bonds, but it may include notes, bills, and so on for public and private expenditures. The bond market has largely been dominated by the United States, which accounts for about 39% of the market. As of 2021, the size of the bond market (total debt outstanding) is estimated to be at $119 trillion worldwide and $46 trillion for the US market, according to Securities Industry and Financial Markets Association (SIFMA). Bonds and bank loans form what is known as the ''credit market''. The global credit market in aggregate is about three times the size of the global equity market. Bank loans are not securities under the Securities and Exchange Act, but bonds typically are and are therefore more highly regulated. Bonds are typically not secured by co ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit Rating
A credit rating is an evaluation of the credit risk of a prospective debtor (an individual, a business, company or a government), predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting. The credit rating represents an evaluation of a credit rating agency of the qualitative and quantitative information for the prospective debtor, including information provided by the prospective debtor and other non-public information obtained by the credit rating agency's analysts. Credit reporting (or credit score) – is a subset of credit rating – it is a numeric evaluation of an ''individual's'' credit worthiness, which is done by a credit bureau or consumer credit reporting agency. Sovereign credit ratings A sovereign credit rating is the credit rating of a sovereign entity, such as a national government. The sovereign credit rating indicates the risk level of the investing environment of a country and is used by investors whe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk-weighted Asset
Risk-weighted asset (also referred to as RWA) is a bank's assets or off-balance-sheet exposures, weighted according to risk. This sort of asset calculation is used in determining the capital requirement or Capital Adequacy Ratio (CAR) for a financial institution. In the Basel I accord published by the Basel Committee on Banking Supervision, the Committee explains why using a risk-weight approach is the preferred methodology which banks should adopt for capital calculation: *it provides an easier approach to compare banks across different geographies *off-balance-sheet exposures can be easily included in capital adequacy calculations *banks are not deferred from carrying low risk liquid assets in their books Usually, different classes of assets have different risk weights associated with them. The calculation of risk weights is dependent on whether the bank has adopted the standardized or IRB approach under the Basel II framework. Some assets, such as debentures, are assigned a hi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stakeholder (corporate)
In a corporation, a stakeholder is a member of "groups without whose support the organization would cease to exist", as defined in the first usage of the word in a 1963 internal memorandum at the Stanford Research Institute. The theory was later developed and championed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management, corporate governance, business purpose and corporate social responsibility (CSR). The definition of corporate responsibilities through a classification of stakeholders to consider has been criticized as creating a false dichotomy between the "shareholder model" and the "stakeholders model" or a false analogy of the obligations towards shareholders and other interested parties. Types Any action taken by any organization or any group might affect those people who are linked with them in the private sector. For examples these are parents, children, customers, owners, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sovereign Wealth Fund
A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds. Sovereign wealth funds invest globally. Most SWFs are funded by revenues from commodity exports or from foreign-exchange reserves held by the central bank. Some sovereign wealth funds may be held by a central bank, which accumulates the funds in the course of its management of a nation's banking system; this type of fund is usually of major economic and fiscal importance. Other sovereign wealth funds are simply the state savings that are invested by various entities for the purposes of investment return, and that may not have a significant role in fiscal management. The accumulated funds may have their origin in, or may represent, foreign currency deposits, gold, special drawing rights (SDRs) and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Institutional Investor
An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-linked companies, insurers, pension funds, sovereign wealth funds, charities, hedge funds, REITs, investment advisors, endowments, and mutual funds. Operating companies which invest excess capital in these types of assets may also be included in the term. Activist institutional investors may also influence corporate governance by exercising voting rights in their investments. In 2019, the world's top 500 asset managers collectively managed $104.4 trillion in Assets under Management (AuM). Although institutional investors appear to be more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses of investment managemen ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Axa Investment Managers
Axa Investment Managers (Axa IM) is a global investment management firm with offices in over 22 locations worldwide. As of 31 December 2021, it manages over €887 billion in assets on behalf of institutional and retail clients. It operates as the investment arm for Axa, a global insurance and reinsurance company. History In 1994, Axa created an investment management subsidiary under the name, Axa Asset Management. It operated separately from the insurance business lines and was headed by Jean-Pierre Hellebuyck. In 1997, Henri de Castries launched AXA Investment Managers (Axa IM) which Axa Asset Management became a part of. Donald Brydon was selected to be its chief executive officer. In 1996, Dominique Senequier joined Axa and founded the Axa Private Equity platform. It operated under Axa IM until 2013 where it was spun off as a separate firm and renamed Ardian. During 1999, Axa IM paid US$125 million for a controlling stake in the Rosenberg Group, an active quantitativ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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