We show that municipal bond markets began pricing sea level rise (SLR) exposure at the end of 2011, coinciding with upward revisions of SLR projections. The effect is present across maturities and is concentrated on the East and Gulf coasts, where storm risk is greatest. We apply a structural...

Municipal bond markets begin pricing sea level rise (SLR) exposure risk in 2013, coinciding with upward revisions to worst-case SLR projections and accompanying uncertainty around these projections. The effect is larger for long-maturity bonds and is not solely driven by near-term flood risk. We...