Müller, Isabella; Nguyen, Huyen; Nguyen, Trang - 2024
shadow banks in securitization markets. Exploiting the election of Donald Trump as an exogenous shock that reduces carbon … risk, we find that banks' securitization decisions are sensitive to borrowers' carbon footprints. Banks are more likely to … is reduced after Trump's election. Importantly, securitization enables banks to offer lower interest rates to polluting …