What are the risks associated with investing in green bonds?
An example of an AI chatbot conversation about the risks of green bonds.
What are the risks associated with investing in green bonds?
Investing in green bonds can involve several risks, including credit risk, market risk, and regulatory risk.
Can you explain credit risk in the context of green bonds?
Credit risk refers to the possibility that the issuer of the green bond may default on their payments, which can affect your returns.
What about market risk? How does it impact green bonds?
Market risk involves fluctuations in bond prices due to changes in interest rates or market conditions, which can affect your investment's value.
Are there any specific regulatory risks I should be aware of?
Yes, regulatory risks can arise from changes in government policies or regulations regarding green investments, which may impact bond performance.
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