Green Bonds Growing in Popularity
Reflecting the growing demand of investors, municipal bond fund managers are turning their attention to bonds associated with funding sustainable and environmental projects. Known as “green bonds,” the issuance of such bonds within the first six months of 2014 was $20 billion, an amount equivalent to total sales of the last seven years. According to the Bond Buyer, investors are attracted to green funds not just for the return, but to help promote conservation and counter the effects of global warming. Further, the popularity of green bonds has attracted investors that had not recently bought munis.