(In)-Credibly Green: Which Bonds Trade at a Green Bond Premium?

with Julia Kapraun

Abstract:This paper provides an in-depth analysis of the pricing of Green bonds, using both, primary and secondary market data. We consider a large global sample of Green bonds and estimate the differences in yields of Green and comparable conventional bonds. At issuance, we find significantly lower yields of 24 bps for Green bonds, implying that Green bonds start trading at a premium compared to their conventional counterparts. This premium, however, varies across currencies and issuer types. Further, on the secondary markets, only bonds issued by governments and supranationals trade at a small premium indicating the importance of credibility, transparency and clear standards for the growth of the Green bonds market. Finally, we reveal the relevance of the listing of the bond on Green exchanges and the overall sustainability reputation of the issuer for the acceptance of Green bonds by investors.

Can Collusion and Competition Coexist in the Same Market: An Ex-Ante Investigation of the German Market

Ongoing Research: In this Project, I show that Collusion and Competition can theoretically coexist in the same market. Using a unique dataset with German Data, I identify some Companies and Industries where the probability of collusion is relatively high.

Does it Pay to Bet against Beta?

Ongoing Research