The color of corporate loan securitization / Isabella Müller, Huyen Nguyen, Trang Nguyen

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1818137348

URN

urn:nbn:de:gbv:3:2-918863

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Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [06. Oktober 2022]

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1 Online-Ressource (III, 59 Seiten, 0,73 MB) : Diagramme

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eng

Anmerkungen

Literaturverzeichnis: Seite 31-36

Inhaltliche Zusammenfassung

We examine whether banks manage firms’ climate transition risks via corporate loan securitization. Results show that banks are more likely to securitize loans granted to firms that become more carbon-intensive. The effect is more pronounced if banks have a lower willingness to adjust loan terms. Exploiting the election of Donald Trump as an exogenous shock that lowers transition risk, we show that banks respond by a lower securitization of loans given to firms that become more carbon-intensive. This is mainly driven by banks that have no or low preferences for sustainable lending and domestic lenders.

Schriftenreihe

IWH-Diskussionspapiere ; 2022, no. 22 ppn:837399270

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