Arbeitspapier
Climate regulatory risks and corporate bonds
Investor concerns about climate and other environmental regulatory risks suggest that these risks should affect corporate bond risk assessment and pricing. We test this hypothesis and find that firms with poor environmental profiles or high carbon footprints tend to have lower credit ratings and higher yield spreads, particularly when their facilities are located in states with stricter regulatory enforcement. Using the Paris Agreement as a shock to expected climate risk regulations, we provide evidence that climate regulatory risks causally affect bond credit ratings and yield spreads. Accordingly, the composition of institutional ownership also changes after the Agreement.
- Sprache
-
Englisch
- Erschienen in
-
Series: Staff Report ; No. 1014
- Klassifikation
-
Wirtschaft
Corporate Finance and Governance: Government Policy and Regulation
Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
Financial Economics: General
- Thema
-
climate risk
regulatory risk
fixed income
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Seltzer, Lee
Starks, Laura T.
Zhu, Qifei
- Ereignis
-
Veröffentlichung
- (wer)
-
Federal Reserve Bank of New York
- (wo)
-
New York, NY
- (wann)
-
2022
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Seltzer, Lee
- Starks, Laura T.
- Zhu, Qifei
- Federal Reserve Bank of New York
Entstanden
- 2022
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