You write: "if you are a company thinking about issuing bonds, you should issue green bonds if you can. It looks like they enjoy a more stable and long-term oriented investor base".
Why does that matter to companies? For reputational reasons? My current understanding is that once the bonds are issued, the company has the money and the annual costs don't change. And a company might even prefer volatile bond prices, if it's interested in buybacks. But I might be on the wrong track as I don't know a lot about bonds.
As a company you want stable bond prices because that will be taken into account the next time you try to issue bonds or get a bank loan. If you have a stable investor base it is easier to raise debt and your cost of debt is lower.
Thank you for the insight, Klement!
You write: "if you are a company thinking about issuing bonds, you should issue green bonds if you can. It looks like they enjoy a more stable and long-term oriented investor base".
Why does that matter to companies? For reputational reasons? My current understanding is that once the bonds are issued, the company has the money and the annual costs don't change. And a company might even prefer volatile bond prices, if it's interested in buybacks. But I might be on the wrong track as I don't know a lot about bonds.
As a company you want stable bond prices because that will be taken into account the next time you try to issue bonds or get a bank loan. If you have a stable investor base it is easier to raise debt and your cost of debt is lower.