Showing results 1 - 3 of 3
| Malcolm Baker | George Serafeim
Financing the Response to Climate Change: The Pricing and Ownership of U.S. Green Bonds. Malcolm Baker, George Serafeim, April 27, 2018, Paper, "Estimates suggest that mitigating and adapting to climate change will cost trillions of dollars. We study the developing market for green bonds, which are bonds whose proceeds are used for environmentally sensitive purposes. After an overview of the U.S. corporate and municipal green bonds market, we…
| Malcolm Baker
The Risk Anomaly Tradeoff of Leverage. Malcolm Baker, December 14, 2014, Paper. "The “low risk anomaly” refers to the empirical pattern that apparently high-risk equities do not earn commensurately high returns. In this paper, we consider the possibility that the risk anomaly represents mispricing, not a misspecification of risk, and develop the implications for corporate capital structure. The risk anomaly generates a simple tradeoff model:…
| Malcolm Baker
Do Strict Capital Requirements Raise the Cost of Capital? Bank Regulation, Capital Structure, and the Low Risk Anomaly, Malcolm Baker, January 2015, Paper, The instability of banks in the financial crisis has led to stricter bank capital requirements, both globally through Basel III and in the U.S. through further constraints imposed by the Federal Reserve. Setting these requirements requires balancing many costs and benefits, both social and…