CEU Electronic Theses and Dissertations, 2015
| Author | Turjanik, Matej |
|---|---|
| Title | Investing Into Social Impact Bonds or Maybe It Is Still Time to Wait and See... |
| Summary | Securing the repayment of an investment is one of the key concerns for many investors. This problem is particularly acute with new financial instruments where only limited information and data are available, that would allow investors to appropriately assess the risks and make arrangements that would make their position more secure. This paper analyzes some of the most interesting problems of a new financial instrument called Social Impact Bond (SIB) that is gaining more and more attention in United States of America. The paper introduces two different areas of concern that can be described as macro and micro problems. Macro problems stem from the potential interference of SIB with the existing legal and economic systems in the United States. They concern the current regulatory void surrounding SIBs and therefore are external in nature to the SIB concept. Micro problems are different in that they derive from the very design features of the SIB concept. These are various risks (e.g. financial risk, intermediary risk, etc.) that are inherent in the SIB design. It is submitted that together macro and micro problems present a significant obstacle to investors interested in securing the repayment of their investment. The paper argues that because of the uncertainties currently present on the United States’ SIB market mainstream profit-oriented investors should wait until the SIB pioneers develop a more standardised and transparent market. |
| Supervisor | Tajti, Tibor |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2015/turjanik_matej.pdf |
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