herosrest
04-17-2008, 09:29 AM
Carbon finance comes of age.
If all goes according to plan, the business of buying and selling rights to pollute the atmosphere with carbon dioxide and other greenhouse gases - carbon trading, as it is known - will curb global warming and save the world. That is its only purpose. Along the way, a lot of people will get rich.
http://money.cnn.com/2008/04/15/technology/Gunther_carbon_finance.fortune/index.htm?section=money_topstories
Paul Ezekiel, head of global carbon trading for Credit Suisse, is inventing new structured products to serve them. In December, Credit Suisse bundled a group of about 20 projects and then sliced the credits into a series of tranches according to their risk profile. Buyers pay more for a collection of low-risk credits, less for those that are chancier. If this sounds familiar, it should - it's the carbon finance version of those collateralized debt obligations that investment banks used to sell mortgages.
If all goes according to plan, the business of buying and selling rights to pollute the atmosphere with carbon dioxide and other greenhouse gases - carbon trading, as it is known - will curb global warming and save the world. That is its only purpose. Along the way, a lot of people will get rich.
http://money.cnn.com/2008/04/15/technology/Gunther_carbon_finance.fortune/index.htm?section=money_topstories
Paul Ezekiel, head of global carbon trading for Credit Suisse, is inventing new structured products to serve them. In December, Credit Suisse bundled a group of about 20 projects and then sliced the credits into a series of tranches according to their risk profile. Buyers pay more for a collection of low-risk credits, less for those that are chancier. If this sounds familiar, it should - it's the carbon finance version of those collateralized debt obligations that investment banks used to sell mortgages.