May 20, 2019

Seeing green shoots in green investing

Dion Rabouin, author of Markets
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Data: Fannie Mae, Bloomberg, NEF, Institute of International Finance; Chart: Axios Visuals

Investment in green assets — securities developed for climate and environmental projects — remains small, but growth is starting to pick up significantly, data from the Institute of International Finance shows.

The big picture: While their asset volumes are still marginal compared to traditional U.S. mortgage-backed securities (which have averaged over $1.5 trillion annually in recent years) IIF notes that green MBS volumes have grown from a trickle of some $6 million per year 2012–2015 to much more substantial issuance. In 2017 and 2018, green MBS issuance averaged $28.8 billion a year.

  • The total has now exceeded $55 billion, with the overwhelming majority issued by the government mortgage giant Fannie Mae.

What it means: Asset-backed securities (ABS) are groups of mortgages, credit card loans or other typically illiquid assets pooled together and sold as one security. Green ABS are all related to low-carbon assets like solar-powered systems or real estate loans in which the proceeds are used to finance green projects.

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Police officer in George Floyd killing arrested

A protester with a sign with George Floyd's last words. Photo: Stephen Maturen/Getty Images

Derek Chauvin, the Minneapolis police officer involved in the killing of George Floyd, was taken into custody Friday by Minnesota's Bureau of Criminal Apprehension, according to the Star Tribune's Briana Bierschbach.

The state of play: Minnesota Department of Public Safety Commissioner John Harrington said that there was no additional charging information yet, as that decision is in the jurisdiction of the Hennepin County Attorney's Office.

This is a breaking news story and will be updated.

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Illustration: Sarah Grillo/Axios

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Illustration: Sarah Grillo/Axios

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