The cost of certification of the problem, which entails determining procedures to select projects, management proceeds, issuing frequency, and regular reporting, is approximately 0.1 bps. For instance, the price of a second opinion on bond issuance ranges from 0.3 to 0.6 bps for each USD 500 million question concerning the nature of exertion involved. Unlike non-green bonds, the cost of allocating green bonds is relatively high. All the monitoring operations occur in separate accounts. The principles entail voluntary guidelines to regulate the binding standards by market participants to steer market growth. Several financial institutions developed the principles concerning the bonds, which are updated annually to enhance efficacy. Those who play in the market and other concerned companies must define the ”green label”. Either an organization directed towards making profit or social purposes qualify for the coverage. More than 50% of the bonds are certified through an external party to obtain a different view. Ĭlose monitoring of and regular reporting on the progress of the green bond projects are conducted to avoid information asymmetry between the concerned parties. It is being noted that the focus of the existing literature on green bond market and the benefits to investors through the diversification of portfolio gives an opportunity to investors to consider a proper strategy for trading with a better understanding of this green bond. Since then, a number of researchers have taken into account the market volatility and have investigated this issue seriously, where market volatility can contribute to this body of knowledge by assuming the green bond as a risk alleviating tool. Thus, the contribution of this work to the initial growth of the market hence laid a following step for future studies. highlights the issue of volatility of the green bond, and this is considered the first empirical study on the volatility of market it found there was more volatility in the label green bond segment when spillover effects were taken into account, as opposed to conventional bond markets. The more developed technique on green bond reported by ref.
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