Energy Cafe: Climate and Bonds
Climate and Bonds: The Impact of Drought on US Corporate Bond Yields
Hosted by Bert Scholtens
At this Café, Bert will talk about new research exploring how drought affects the cost of borrowing for US companies.
Recent analysis highlights the link between drought conditions and higher borrowing costs faced by companies exposed to those conditions. In these cases, investors demand higher returns to lend to firms that are at greater risk from drought. This impact is felt even stronger for companies that operate in a limited geographical region. The effect is also more noticeable for companies that are less profitable or carry more debt, as investors may see them as less able to absorb additional financial stress. Interestingly, the study finds that this pattern holds across different industries, suggesting that drought risk affects companies broadly rather than being limited to specific sectors.
Come along to the Cafe to find out more!About the Cafe Series
The Energy Café is an informal, open and inclusive space where people across our network, from undergraduates to Professors Emeriti, can come together for an hour to share ideas about the energy research they are working on. It is intended to encourage collaborations, expand research horizons, and inspire new ideas and questions about issues of energy.
Fostering collaboration and interdisciplinarity are at the heart of the Centre’s ethos and the motivation for the Café. By openly exchanging ideas with others and working across disciplines, the Energy Café offers a unique venue that celebrates the diversity of roles and contributions individuals make to energy research and research culture.