Using a firm’s geographic footprint to measure its exposure to sea level rise (SLR), I find that corporate bonds bear a climate risk premium upon issuance. A one standard deviation increase in firms’ SLR exposure is associated with a 7 basis point premium, representing a 3% increase in...

In an effort to alleviate greenwashing concerns, firms are increasingly commissioning voluntary external reviews and certifications of their green bond issues. This paper examines the role of external parties in reducing information asymmetry in the green bond market and the ensuing effects on...

I study the existence of zombie credit in association with the access of zombie firms to the public debt market. While zombie firms are likely to obtain syndicated loans, these firms also issue bonds, particularly when they have larger and older outstanding syndicated loans from relationship...

Using a recently developed measure of financial market risk perceptions, we show that market risk perceptions affect firm-level corporate investment and financing. While multiple channels drive these results, we find evidence that firms cater to investors’ preferences. When perceived risk is...

Using equity returns on all banks (across 28 countries) that ever issued contingent convertiblecapital securities (CoCos), we identify a “CoCo-induced collapse option,” that apparently was exercised during the March 2023 failure of Credit Suisse. Reflecting this option’s value, abnormal...