In this guest post, Manmohan Singh of the International Monetary Fund and Phil Prince of Pine River Capital Management argue that the use of longer-term securities as collateral for short-term borrowing should affect how central bankers think about “money”. All views expressed are of the authors only and do not represent the opinions of the IMF or Pine River Capital.
Any legislative measures offering regulatory and tax relief to green bonds demand clearer rules on what constitute such assets if gaming is to be avoided. But such measures will also enrich the nascent green industry.
Credit investors aren’t too worried about the economic cycle or corporate fundamentals, but they are worried about a potential boom in borrowing to do “transformative” deals.