Discussion
Anybody have any predictions on Rishi's Green Bonds?
I'm wondering if they may be worth a punt, but cold water is already being poured on the idea: https://www.thisismoney.co.uk/money/saving/article...
I'm wondering if they may be worth a punt, but cold water is already being poured on the idea: https://www.thisismoney.co.uk/money/saving/article...
Bonds in general are just really difficult to justify at present.
For example, a FTSE tracker yields about 2.75 at the moment. Arguably the downside risk at any particular moment is probably not much more than 30% and on the other side there is an assumption of an upside gain over a medium to long term period.
Conversely, to get the same sort of yield from a bond you have negligible gain potential but as you're stepping away from govt bonds you are potentially taking in 100% default risk.
There is the other issue which is that ethical usually means fraudulent, fee milking and default riddled bit at least when it's govt backed you have the security.
For example, a FTSE tracker yields about 2.75 at the moment. Arguably the downside risk at any particular moment is probably not much more than 30% and on the other side there is an assumption of an upside gain over a medium to long term period.
Conversely, to get the same sort of yield from a bond you have negligible gain potential but as you're stepping away from govt bonds you are potentially taking in 100% default risk.
There is the other issue which is that ethical usually means fraudulent, fee milking and default riddled bit at least when it's govt backed you have the security.
Seems like a crap product with a layer of marketing slapped on to appeal to credulous 'ethical' investors. Can't see why you'd touch it compared to other options from the way it's described unless you really believe somehow you're helping save the planet.
Though as DA points out probably a bit less fraudy/misleading than a lot of so called ethical investments.
Though as DA points out probably a bit less fraudy/misleading than a lot of so called ethical investments.
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