PhD seminar with Valentin Schubert

Title: Is Flood Risk Priced in Bank Returns?

Abstract:
Climate change related disasters are projected to increase considerably over our lifetime, and flooding is by far the most expensive. Using a comprehensive future flood risk measure matched to bank holding companies in the United States, I find that a higher exposure to future risk results in lower realised excess returns. This is consistent with bank stock prices under-reacting to flood risk.