Ugolini, Andrea; Reboredo, Juan C.; Ojea-Ferreiro, Javier - 2023
We study whether climate transition risk is reflected in the credit default swap (CDS) spreads of firms. Using … information on the vulnerability of a firm's value to the transition to a low carbon economy, we construct a climate transition … not of less vulnerable firms. Considering the impact of different climate transition policies on the CTR factor, we find …