History indicates that assets related to fundamental economic and social change may experience a significant price correction after an initial surge of interest, according to the BIS analysis, which took as its example 19th-century railroad stocks and the dot.com bubble.
The rapid pace of growth in green investing raises the prospect of a bubble that could burst further down the road, according to the Bank for International Settlements.
Price-to-earnings valuations for clean energy companies are high and more analysis is needed to understand how green investing is playing out in the credit market, the Basel-based institution said in its quarterly report published on Monday.
