Climate Regulatory Risks and Corporate Bonds
UNIVERSITY OF TECHNOLOGY SYDNEY
Research Seminars in Finance
Topic: Climate Regulatory Risks and Corporate Bonds
Speaker: Laura Starks, University of Texas Austin
Abstract: Examining how climate and other environmental regulatory risks affect bond risk and pricing, we find that bond credit ratings and yield spreads appear to be in influenced by a firm's environmental performance along with its regulatory conditions. Firms with poor environmental profiles tend to have lower credit ratings and higher yield spreads, particularly when the firm is located in a state with more stringent environmental regulations. Using the Paris Agreement as a shock to expected climate regulation, we provide evidence of a causal relation between climate regulatory risks and the credit ratings and yield spreads of bonds with problematic environmental profiles.
Moderator: Deborah Cotton, University of Technology Sydney
Date: Wednesday, 23rd September 2020
Time: 9-10 am (Australian Eastern Standard Time)
Venue: This is on online Zoom webinar.
After registering, you will receive a confirmation email containing information on how to join the meeting, including an access link.
- The webinar will run for 45 minutes, followed by a 15 minute Q&A session.
- There will be a moderator for each seminar event, who will facilitate communication and resolve any technical issues.
- Participants can use the Q&A facility to ask questions during the presentation. The moderator will then alert the speaker and ask the questions raised.
Co-ordinator: Harry Scheule
Enquiries: Duncan Ford