Municipal bond markets begin pricing sea level rise (SLR) exposure risk in 2013, coinciding with upward revisions to worst-case SLR projections and accompanying uncertainty around these projections. The effect is larger for long-maturity bonds and is not solely driven by near-term flood risk. We...

We examine how coordination between elected officials and voters impacts local governments' borrowing costs. Using the Tax Cuts and Jobs Act as an identifying shock that implicitly raised the cost of local public goods for residents, we show in a difference-in-differences framework that the...

We investigate how the introduction of market-based pricing, the practice of tying loan interest rates to credit default swaps, has affected bank financing. We find that market-based pricing is associated with lower interest rates, both at origination and during the life of the loan. Our results...

We empirically evaluate the systemic stability of two large CDS CCPs. We show that positive correlations between the exposures of large dealers could lead to substantially larger combined stress losses to a CCP than if we consider dealers in isolation. These results highlight crowded trade...

We use quasi-random variation in federal loan examiner assignments -- affecting examiner leniency and supervisory ratings -- to test how bank supervision affects corporate lending. Following a supervisory rating downgrade, lead banks lower their internal risk assessments, decrease loan...

We investigate how the introduction of market-based pricing, the practice of tying loan interest rates to credit default swaps, has affected borrowing costs. We find that CDS-based loans are associated with lower interest rates, both at origination and during the life of the loan. Our results...