Research


Selected publications


Selected Working Papers

Deciphering Greenium: the Role of Investor Demand, with L. Wang

Using security-level bookbuilding data, we analyze the pricing and demand for green bond offerings (GBOs) compared to their conventional counterparts. We show that greenium arises from a somewhat lower initial offering spread and larger spread tightening after bookbuilding, consistent with our finding that investor demand is typically higher for GBOs but varies considerably. These results suggest that investor-tastes models explain greenium. Further analyses do not support the temporary price pressure or liquidity preference arguments. Finally, we find investors' lower price sensitivity for GBOs also contributes to greenium. Overall, our study suggests that realizations of investor demand drive the observed greenium