Two brilliant stories today. On one hand a potentially juicy yield from the fiscally progressive New South Wales state government in Australia. elsewhere, Robert Schiller outlines what could even be a simple demand/supply equation – people like doing good, there was an imbalance in finance to the arcane and the next generation of finance will create a means to once again finance the future more tangibly on a micro and macro scale…
I hope you too enjoy these interesting articles:
Social Ventures Australia is offering investors the opportunity to invest in Newpin Social Benefit Bonds (SBBs) that could yield up to 15% per annum, while helping to reunite children in care with their families. Like any high-yield investment, however, there is risk.
The introduction of SBBs was announced by NSW Treasurer, Mike Baird, in the state budget brought down in September 2011. Then, in late March this year, he announced the launch of the first such bond, the Newpin SSB.
On Thursday night, a public launch was held in the offices of AMP, overlooking Circular Quay. At the time of this event, Social Ventures Australia was already half-way towards raising the $7 million sought from the bond issue.
Economist Robert Shiller has argued in favor of the “genuine beauty” in finance.
He believes that financial instruments can contribute to a better society because humans have an innate tendency towards generosity.
In an interview published by Credit Suisse he says that that finance recognizes “the egotistical side of human nature. This presents potential for conflict.”