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Credit Markets Ignore Climate Risk After Brutal European Summer

Bloomberg Markets •
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Severe droughts across Europe this summer led to huge wildfires, disrupted transport on critical routes, threatened power plants and hit corporate earnings across the continent. The credit markets are mostly unmoved. The extreme weather is a reminder of the growing risk that climate change poses to European economies, but that is yet to be reflected in spreads, credit default swaps or ratings — all key indicators of the health of credit markets.