We examine whether banks manage firms’ climate transition risks via corporate loan securitization. Results show that … that lowers transition risk, we show that banks respond by a lower securitization of loans given to firms that become more … banks are more likely to securitize loans granted to firms that become more carbon-intensive. The effect is more pronounced …

This note considers the role debt-equity conversions and NPL securitization can play in addressing excessive corporate … debt in China, and the corresponding burden on banks of impaired assets. It finds that such techniques can play a role, but …