%0 Generic
%A Partridge, C
%A Medda, F
%D 2018
%F discovery:10056260
%I SSRN
%K Green Bonds, Municipal bonds, Infrastructure, ESG, Sustainability, Investment
%T The Creation and Benchmarking of a Green Municipal Bond Index
%U https://discovery.ucl.ac.uk/id/eprint/10056260/
%X As the green bond market grows, many are wondering if there is a pricing difference between green bonds and conventional bonds. In order to explore these ideas, we created bond indices specific to the green-labelled and climate-aligned municipal bond market, primarily to test the competitiveness of the green sector of the muni bond market against the overall muni bond market. We used the S&P municipal bond index construction methodology in order to compare like with like, and benchmarked the green and climate indices against their counterpart S&P municipal indices. We find that the green and climate muni indices showed CAGRs of 4.5% from 2014 to 2017, compared with 3% for the S&P Investment Grade Municipal index. We also created several sector and state sub-indices, which also outperformed their S&P counterparts.
%Z This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions.