Carbon Credits: The Future Hedge Fund’s Synthetic Financial Product?

Posted by Dr. James Canton on May 4, 2007 under Uncategorized | Be the First to Comment

Hedge funds invent synthetic products using various asset classes, car loans, currencies, bonds, real estate, to manage risk and returns. I think this creative stock jockey hacker is ready to rumble when they get their hands on the carbon credit markets, yet in their infancy today.

I forecast that carbon credits will become like currency or commodity futures, monetary assets that will be bundled and traded. Carbon–the right to pollute, will be used by “creative” investment bankers to add value to trades over electronic exchanges from NASDAQ, to Bloomberg, to other pure ECN’s. Where there is a buck or yen to be made in the clean tech industrial marketplace, where the Global Fortune 1000 are not yet fully green–there will be billions made. You heard it hear first, maybe.

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