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.
In this guest post, Marcello Minenna, the head of Quantitative Analysis and Financial Innovation at Consob, the Italian securities regulator, argues that reforms to the European Stability Mechanism can pave the way for Eurobonds. The views expressed here are his personal opinions and do not necessarily reflect the views of Consob.
Turns out that mishandling a banking crisis and then systematically annihilating the supply of local currency safe assets leads to sustained capital outflows.