New research suggests that the U.S. municipal bond market systemically misprices risk, as the pricing of municipal debt does not account for local physical climate risk, but does demand larger credit spreads from communities with a larger proportion of Black residents. Erika Smull of Duke University, U.S., and colleagues present these findings in the open-access journal PLOS ONE on August 9.
Click here for original story, US municipal bond market pricing may be biased by race, unphased by climate risk
Source: Phys.org