The trend of divesting from fossil fuels and turning to clean energy investments instead has certainly grown in recent years. As these investments originated from concern for the environment rather than traditional financial return objectives, serious investors may wonder if these investments that are “benefitting society” still earn the same level of return on investment.
Bonds are a common, if not particularly exciting, investment tool.
People buy bonds when they have money to loan and someone else – typically a corporation or government—needs to borrow. A bond is just a loan, offered at a specific interest rate, known as a coupon, that varies based on factors like who’s borrowing the money, how much they borrow, and when they plan to pay the money back.