This article provides the theoretical foundation for the concept of “Underwaterwriting,” which
can be understood as various informational and institutional limitations related to …

Floods and other climate hazards pose a widespread and growing threat to housing and
infrastructure around the world. By reflecting climate risk in prices, markets can discourage …

Policymakers have put forward proposals to ensure that banks do not underestimate long-
term risks from climate change. To examine how lenders account for extreme weather, we …

Floods and other climate hazards pose a widespread and growing threat to housing and
infrastructure around the world. By incorporating climate risk into asset prices, markets can …

With increasing natural disaster risk and declining flood insurance take-up, homeowners in
coastal areas may be at increasing risk of mortgage default. Banks have the ability to screen …

We explore the design of climate stress tests to assess and manage macroprudential risks
from climate change in the financial sector. We review the climate stress scenarios currently …

Using the government-sponsored enterprises' sharp securitization rules, this paper provides
evidence that, in the aftermath of natural disasters, lenders are more likely to approve …

We show that lenders charge higher interest rates for mortgages on properties exposed to a
greater risk of sea level rise (SLR). This SLR premium is not evident in short-term loans and …

Counties more likely to be affected by climate change pay more in underwriting fees and
initial yields to issue long-term municipal bonds compared to counties unlikely to be affected …

In this paper, we explore dynamic changes in the capitalization of sea level rise (SLR) risk in
housing and mortgage markets. Our results suggest a disconnect in coastal Florida real …