How sea level rise exposure is priced into municipal bonds
Experts at Wharton have created a model that improves upon conventional approaches to understand how investors perceive the impact of climate risk on local economies. One important aspect of climate risk is sea level rise, and how it affects coastal communities. In their paper titled “Sea Level Rise Exposure and Municipal Bond Yields,” the experts use municipal bond prices as a proxy to estimate the impact of sea level rise risks.
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