European secured notes - covered bond like structures - based on loans to small and medium sized enterprises have to answer three questions: what is an SME? What is a loan? And are they any good? None of these questions is trivial.
One of the main objections to European Secured Notes is that one of the proposed asset classes that could back them - loans to Small and Medium sized enterprises just aren't as good as residential mortgages. So surely the resultant bonds must be worse? Half true.
Making houses in Spain more energy efficient or installing solar panels in Wales are both worthy green bond projects. But they don't generate as much benefit as some projects that are more difficult to invest in.