Sustainability-linked derivatives: Difference between revisions

Sustainability-linked derivatives (view source)

Revision as of 05:33, 19 May 2023

11 bytes removed , 19 May 2023

no edit summary

Amwelladmin

Bureaucrats, Interface administrators, Administrators

82,387

edits

@@ Line 1: / Line 1: @@
 {{a|myth|}}{{c2|ESG|ISDA}}{{dpn|/səsˌteɪnəˈbɪlɪti lɪŋkt dɪˈrɪvətɪvz/|n}}It is said that the early inhabitants of Easter Island became so obsessed with erecting statues of their ancestors that they felled every tree on the island for rollers to transport their monoliths. The removal of root systems  compromised soil integrity, accelerating erosion, degraded fertility and eventually ruined the ecosystem, rendering the island all but uninhabitable and wiping themselves out, all in the forlorn attempt to please some imaginary people in a symbolic but utterly meaningless way.
-This “Ecocide” theory, popular a generation ago, is out of favour with hand-wringing snowflakey academics nowadays, and ISDAs council of elders nay hope the JC’s corresponding theory, “swapicide” falls similarly out if academic favour. Well, it gas to fall ''in'' to favour first. So here goes.
+This “ecocide” theory, popular a generation ago, is out of favour with hand-wringing [[snowflake]]y academic types nowadays, and ISDA’s council of elders may hope the JC’s corresponding theory, “swapicide” falls similarly out of favour. But to do that, it has to fall ''in'' to favour first. So here goes.
-Some might detect irony in ISDA’s latest product — “sustainability-linked derivatives” — should call too mind so notorious an example of poor environmental and social government.
+Some might detect irony in ISDA’s latest product — “sustainability-linked derivatives” — should call to mind so notorious an example of environmental and social misgovernment.
-It adds heft to the JC’s growing collection of examples of an organisation which says it is devoted to “safe, efficient markets” going out of its way to baffling, over-wrought and ultimately doomed<ref>sunk without trace: [[2011 ISDA Equity Derivatives Definitions, [[2022 ISDA Securities Financing Transactions Definitions]], [[2023 ISDA Digital Asset Transactions Definitions]]were dead on arrival and those that did get used were no great scream of exhilarating clarity: the Regulatory IM and VM CSAs and the [[2014 ISDA Credit Derivatives Definitions]] as cases in point.</ref> work-creation schemes, felling more and more trees in the cause of pumping out white papers, new products and territorial land-grabs.
+An embedded community of toilers supposedly there to steward the onward prosperity of the environment, swept up by grand delusions of market appetite, wastes every tree in sight in devising mad, hypercomplicated schemes for hypothetical investors who no-one has seen. <ref>Sunk without trace: [[2011 ISDA Equity Derivatives Definitions, [[2022 ISDA Securities Financing Transactions Definitions]], [[2023 ISDA Digital Asset Transactions Definitions]]. Those that did bear fruit were no great scream of exhilarating clarity: the Regulatory IM and VM CSAs and the [[2014 ISDA Credit Derivatives Definitions]] as cases in point.</ref>
+Even so this feels like a step further through the looking glass.
 A sustainability-linked derivative is like a normal one — say and interest rate swap — except that spread one pays on one’s floating leg is adjustable measured by ones satisfaction of [[ESG]] [[key performance indicators]]