Journal of Applied
Finance & Research

Abstract

We formally measure the repricing of energy sector loan portfolios held by globally active banks in response to disclosed climate transition pathways. Using syndicated loan data matched to borrower emissions intensity, the study estimates how spreads, tenors, and covenant packages have evolved between 2017 and 2023. The analysis identifies the segments where transition risk has been priced most aggressively and the segments where the alignment between disclosure and pricing remains incomplete.

References

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