Agenda

Claudio Rizzi (University of Miami) - Nature as a Defense from Disasters: Natural Capital and Municipal Bond Yields

Abstract
This paper shows that natural capital loss affects financial markets and municipalities’ borrowing costs. Using exogenous variation in wetlands change, I find that a loss in wetlands is related to an increase in municipal bond yields both in the primary and secondary markets. Municipal bond markets price nature loss risk following an extreme weather event. The effect is more prominent for bonds issued by counties more reliant on local tax revenue, farming communities, revenue bonds, and bonds financing infrastructure projects. The results show one of the costs of natural capital destruction on financial markets and local governments.

The zoom link is: bit.ly/jobmarketseminars11jan

ID riunione: 840 8029 2519
Passcode: PTc5qV