No Good Deed Goes Unpunished: Green Investment Bonds Are Credit Negative For Banks

When European Commission (EC) Vice President Valdis Dombrovskis announced an array of green investment proposals to encourage capital formation in green investment bonds – including lowering capital requirements regulators will allow for such investments – this intervention is viewed as a negative, according to Moody’s. While the overall goal to more closely conform with the Paris Agreement is viewed as a consistent policy statement from the European Parliament (EP) – and encourages investment in a geopolitically strategic industry — it is not a credit positive for the banks, Moody’s analyst Alberto Postigo says. [buffett] Green Investment Bonds: As the strategic…