We investigate the uncertainty dynamics surrounding extreme weather events through the lens of option and stock markets … by identifying market responses to the uncertainty regarding both potential hurricane landfall and subsequent economic … impact. Stock options on firms with establishments exposed to the landfall region exhibit increases in implied volatility of …

We examine whether climate change news risk is priced in corporate bonds. We estimate bond covariance with climate … asset pricing implications of demand for bonds with high potential to hedge against climate risk. Moreover, when investors … are concerned about climate risk, they are willing to pay higher prices for bonds issued by firms with better …

-on-equity (ROE), and investment-to-assets (I/A). ROE- and I/A-related long/short factors are insensitive to hurricanes, while size …

-lasting increases in implied volatility, reflecting impact uncertainty. Using hurricane forecasts, we find both landfall uncertainty and … volatility to ex post realized volatility by analyzing volatility risk premia changes due to hurricanes indicates that investors …We present a framework to identify market responses to the uncertainty regarding both potential hurricane landfall and …

The Security and Exchange Commission (SEC) has considered climate change as a risk issue since 2010. Several emission … financial performances, especially of listed companies. There are two ways these companies can disclose their transition risk … exposure and are not alternatives. One is the explicit declaration of exposure to transition risk in the legally binding …

that lead to these assets becoming stranded. Our result suggest that climate change implies a positive and increasing risk … premium, with the overall equity premium depending on the volatility of the stochastic process that governs climate change … risk. Transition risks lower substantially the participation of carbon intensive assets in the market portfolio, which …

-lasting increases in implied volatility, reflecting impact uncertainty. Using hurricane forecasts, we find both landfall uncertainty and … volatility to ex post realized volatility by analyzing volatility risk premia changes due to hurricanes indicates that investors …We present a framework to identify market responses to the uncertainty regarding both potential hurricane landfall and …

insensitive to divestment strategies, their risk profile is proportionally (to their carbon intensity) affected by divestment …

The COVID-19 pandemic has led global investors to draw a parallel between pandemics and climate risk, focusing their … attention on climate risk. We examine COVID-19’s effect on investors’ awareness of climate risk by analyzing novel trading data … attention to climate risk is heterogeneous …